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Sogo may add Shanghai plaza to sweeten listing

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Sandy Li

The Lau brothers of Chinese Estates Holdings may include an uncompleted Shanghai shopping plaza into Sogo Hong Kong to bolster interest in its proposed listing.

'The injection will spice up the commercial ingredients in Sogo Hong Kong, as it has the concept of combining two prime retail properties in Hong Kong and Shanghai,' a source said.

'The shopping plaza in Shanghai also offers a platform for the Japanese department store operator to tap the mainland's flourishing retail market.'

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The source said the Hong Kong retail market was small and Shanghai would serve as Sogo's growth engine in the future.

It is believed the Laus will include their 50 per cent-owned shopping plaza - Jiu Bai Cheng Shi Guang Chang in Nanjing West Road - in the listing vehicle.

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Sources said the centre, in which the Lau brothers have the right to operate a department store, was scheduled to open in May.

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