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Luxurious manufacturers are increasing their presence within the flagship Hong Kong mall of the K11 Group, because the high-end actual property arm of billionaire Henry Cheng’s New World Improvement Co. bets on a rebound within the metropolis’s premium retail sector to assist ease property-market woes.
The growth at K11 Musea in Hong Kong’s prime buying hub Tsim Sha Tsui consists of retailer upgrades by labels corresponding to LVMH’s Loewe and Kering SA’s Saint Laurent and Balenciaga, in addition to a brand new retailer by Prada SpA, the group mentioned in an announcement to Bloomberg Information.
Different manufacturers planning a revamp of their shops embrace Italian style home Brunello Cucinelli SpA, Cie Financiere Richemont SA’s Van Cleef & Arpels, and Swiss watchmaker Audemars Piguet Holding SA. Collectively, the upgrades will double the footprint of the seven luxurious labels within the mall to greater than 30,000 sq. toes, K11 mentioned.
The assertion confirms an earlier Bloomberg report about Prada’s new retailer at K11 Musea.
The K11 mall’s luxurious pivot gives one of many first clues to New World’s turnaround plans after the developer, which has been grappling with larger debt ranges than its friends, issued a warning final month of an anticipated lack of as much as HK$20 billion ($2.6 billion) for the monetary yr resulted in June.
A major a part of the decline displays slumping property values as Hong Kong struggles with one in every of its worst actual property market routs as a consequence of excessive rates of interest and a broader financial slowdown.
Main landlords within the monetary hub are pinning their hopes on luxurious giants and their attraction to high-net price clients who’re among the many least affected by the downturn. International manufacturers, a lot of which downsized in Hong Kong throughout its Covid-19 isolation, are additionally re-evaluating the town, lured by rents within the core buying districts which have plunged as a lot as 90 % from the pre-pandemic ranges.
“We’re excited that many main luxurious manufacturers are increasing at K11 Musea, particularly within the context of present Hong Kong retail sector,” mentioned Richard Cheung, govt vice chairman of the K11 Group, within the assertion.
The K11 model malls have been a key progress driver for New World’s funding property sector. Within the six months ended December, Musea recorded a 41 % improve in gross sales from the yr earlier than, primarily pushed by luxurious spending, magnificence care and cultural actions, in response to New World’s monetary report.
The model, launched by New World chief govt officer — and Henry’s eldest son — Adrian Cheng, leans closely into arts and tradition parts for its properties. Musea is peppered with art work shows and has hosted a number of high-profile occasions in current months, together with Louis Vuitton’s first ever style present in Hong Kong final yr and an exhibition this summer time of beloved Japanese cartoon character Doraemon.
The month-long exhibition contributed to a 40 % rise in common vacationer spending at Musea, with foot visitors up 30 % in the course of the opening weekend, New World mentioned in a e-newsletter in July.
By Shirley Zhao
Hong Kong Luxurious Retailers Sit Empty as Chinese language Spending Plunges
Banks and quick meals eating places have taken over areas as soon as leased to the likes of Omega and Burberry within the iconic buying vacation spot.
