Landlords prepare to welcome new affluent residents to Tsuen Wan with upgraded shopping malls
Chinachem Group is spending HK$400m to renovate 10-year-old mall within 89-storey Nina Tower and is gearing up to open another at Parc City
Tsuen Wan’s retail landscape is set for huge improvements as major developers open new malls and upgrade existing ones to tap the higher spending power of residents moving into upscale housing in the area.
Chinachem Group, which owns Nina Tower, the tallest building in the New Territories at 89 storeys that comprises a mall, a five-star hotel and offices, is spending about HK$400 million to renovate the 10-year-old shopping centre that takes up four storeys and has 84 shops.
The developer is also preparing to open a 100,000 square feet mall that has 53 shops at its Parc City residential project, which it bought from MTR Corp for HK$1.2 billion (US$152.8 million) last
November. The 953-unit Parc City development will be ready for delivery in March next year.
“With the maturation of western Tsuen Wan, we are even more optimistic about the area’s prospects,” said Donald Choi, chief executive of Chinachem Group, the biggest landlord in Tsuen Wan with a retail leasing portfolio of nearly 807,500 sq ft.
The company is also considering using at least one floor of its 1,608-room L’hotel et Convention Centre, which brings in one million patrons each year, as a venue for meetings, incentives, conferences and exhibitions (MICE) for about 1,000 people.
“We believe it is worth the investment to upgrade the shopping centre when we take into account the MICE element of our L’hotel as it will bring in additional customers.”
According to consultancy Savills, retailers in Tsuen Wan have a captive audience of more than 800,000 people, one-tenth of Hong Kong’s population, if Kwai Chung and Tsing Yi are included. They will also benefit from a large number of upscale buyers who will move into newly developed properties next year.
According to agency Royal City Properties, buyers are expected to move in to 5,182 flats by next year.
“The new developments in the district, such as Ocean Pride, are at the relatively high end so they can bring in residents with relatively high spending power,” said Barrie Chan, head of retail agency at Savills.
Chinachem is not the only developer that is bullish on Tsuen Wan’s retail sector.
CK Asset Holdings, chaired by Victor Li Tzar-kuoi, will open OP Mall at its 2,406-flat Ocean Pride development next to Tsuen Wan West station in the third quarter next year. The four-storey shopping centre will provide 430,000 sq ft of space for 300 shops.
Meanwhile, Billion Development and Project Management has an incomplete project comprising three residential towers with 840 flats and one office tower spanning 652,000 sq ft in the district.