Hang Lung Properties’ HK$2b upgrade of assets paying off
Company owns an investment property portfolio of 6.95m square feet in Hong Kong, including Fashion Walk in Hong Kong’s Causeway Bay and The Peak Galleria, and 24.21m sq ft of space in eight mainland cities
Hang Lung Properties is beginning to reap the benefits of an asset enhancement programme launched in 2012, say officials, which is focused on its major shopping malls in Hong Kong and the mainland.
The developer said its investments – that include significant work at two major malls on the mainland and smaller retail investments in Hong Kong – were already making a contribution to the group, thanks in part to the recent pick up in consumer spending.
Hang Lung budgeted HK$2 billion over a seven-year period starting in 2012. The funds will help renovate two malls in Shanghai – the Plaza 66 and Grand Gateway 66 – for HK$1.4 billion (US$205 million), and HK$600 million will go into the makeovers of shopping malls in Hong Kong.
Hang Lung owns an investment property portfolio of 6.95 million square feet in Hong Kong including Fashion Walk in Causeway Bay and 24.21 million sq ft of space in eight cities in the mainland: Shanghai, Shenyang, Jinan, Wuxi, Tianjin, Dalian, Kunming and Wuhan.
The makeover plan for Plaza 66, the group’s largest rental contributor in the mainland and home to global brands including Prada and Dior, is in its final stage since starting in 2015.
Norman Chan, leasing and sales director at Hang Lung, said: “Its near-completion comes as the luxury retail market in the mainland rebounded in the last quarter of 2016.