Hang Lung to build luxury homes next to its malls, office towers

Hang Lung Properties plans to develop luxury residential projects next to its high-end shopping malls and grade A office projects on the mainland to maximise its investment return, chairman Ronnie Chan Chichung said.

"I'm always asking the question: what are the prices for residential projects located next to a city's world-class shopping mall and high-end office development? The answer is it will be the most expensive homes in the city," Chan said.

"In such cases, it is hard to commit any fatal mistakes, as these kinds of projects are in the heart of the city."

But Hang Lung would not build stand-alone residential projects, he said.

The company has a land bank of 6.5 million square feet for residential development on the mainland - 3.5 million sq ft in Shenyang in Liaoning province and more than one million sq ft each in Wuxi in Jiangsu province, Wuhan in Hubei province and Kunming in Yunnan province.

About 10 years ago, Hang Lung embarked on a new mainland strategy. The company has more than 41 million sq ft of prime commercial space in seven cities - 16.8 million sq ft completed and 24.5 million sq ft under construction.

The completed shopping mall projects are Plaza 66 and Grand Gateway 66 in Shanghai, Palace 66 and Forum 66 in Shenyang, Parc 66 in Jinan in Shandong province and Centre 66 Phase 1 - comprising a shopping mall and a grade A office tower - in Wuxi.