Retail News CRM

Category: Real Estate

Retail News Asia is committed to providing both local and global retailers with the latest Real Estate news throughout the Asian market. This on a daily base.

  • Malaysia property market to remain flat in 2019: Rahim & Co

    Malaysia property market to remain flat in 2019: Rahim & Co

    The property market is expected to remain flat this year before picking up again next year, said Rahim & Co International Sdn Bhd. Executive chairman Tan Sri Abdul Rahim Abdul Rahman said the property market will remain flat across all sectors this year, except for the warehousing sub-sector, which will be driven by growth of e-commerce.

    He said the overall market will take about 12 months to begin picking up, in line with the anticipated resolution of the trade war between the US and China.

    Rahim & Co director of research Sulaiman Akhmady Mohd Saheh said the residential market will take one to two years to improve due to affordability issues while the office market will remain slow for more than a year due to incoming supply.

    He said asking rents for offices have dropped 20% while effective rents have dropped 8-10%.

  • New Celine store design was made for Asia

    New Celine store design was made for Asia

    The new Celine store design unveiled in New York City is destined for China and Japan in the early stages of a global rollout. The white and grey dominated, minimalist design illustrated here in official photographs released by the luxury fashion brand, was conceived by the label’s creative director Hedi Slimane. The first store, which has opened at 650 Madison Avenue, takes up 5000sqft, making it Celine’s largest store yet anywhere in the world.

    According to company sources, the new look will be implemented next in Los Angeles, Paris and Milan before being launched in Shanghai, Beijing and Tokyo.

    Slimane uses natural materials as a contrast to stark white walls and polished railings.

    He used natural stones like basaltina on the floors and ginger and cream-streaked black granite on walls and some shelving together with a combination of marbles and grey travertine.

    Contrasting yet complementing the stone, reclaimed oak, polished stainless steel, brass, gold, and concrete are used and in the case of the Madison Avenue store, a large rock creates a focal point in the store.

    Celine says future stores will feature commissioned artworks relevant to the locations. Commissioned artists include Jose Davila, Oscar Tuazon, Elaine Cameron Weir and James Balmforth.

    The stores will also feature furniture designed by Slimane, such as wooden benches, tanned leather chairs and brass side table.

    The timeline for the rollout of the new Celine store design has not yet been released.

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  • Taubman Sells Shares of Three Asian Shopping Centers

    Taubman Sells Shares of Three Asian Shopping Centers

    US retail property specialist Taubman Centers is to sell a 50 per cent stake in three of its shopping centres in China and Korea to funds managed by private equity company Blackstone Group. The deal, worth US$480-million, is expected to be settled later this year and will net Taubman about $315 million according to financial news reports. The company will maintain a share of up to 25 per cent in each property.

    Post settlement, Taubman will be contracted for the ongoing management of the centres.

    The centres are South Korea’s Starfield Hanam, and China’s CityOn Xi’an and CityOn Zhengzhou.

    Taubman manages a 26 regional, super-regional and outlet shopping centres in the US and Asia, and has another property under development. CEO Robert S Taubman said the sale was part of a strategy of recycling capital for growth.

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  • Vietnam’s Deputy PM wants Long Thanh airport construction to begin next year

    Vietnam’s Deputy PM wants Long Thanh airport construction to begin next year

    Construction of Long Thanh International Airport should begin next year with private funding prioritized, Deputy PM Trinh Dinh Dung has said. It has reached the highest level of priority since Saigon’s Tan Son Nhat has become overloaded, he said at a recent meeting. The deputy prime minister wanted the giant new airport in Dong Nai Province near HCMC to become an aviation hub for Southeast Asia.

    “If we get companies with deep pockets into the project, costs would surely be lower than using public funds or loans.”

    The Airports Corporation of Vietnam (ACV) recently proposed it should be the main investor.

    The ACV, which operates 21 airports in the country, said it could bring in the $1-1.5 billion needed for the first phase of the airport.

    It is currently working with the Ministry of Transport and Dong Nai authorities to acquire 1,800 hectares of land for the first phase.

    The ministry reported at the meeting that the consultancy consortium of the airport is now completing the preliminary design, which would be submitted next April.

    The ministry has instructed the consortium, JFV, to complete an environmental impact report by next month.

    JFV, comprising three Japanese, one French and two Vietnamese companies, will also need to submit a feasibility report for the airport by June.

    The Long Thanh International Airport, to be built in three phases over three decades, will become Vietnam’s largest airport.

    The first part is scheduled for completion in 2025 with a capacity of 25 million passengers a year. The next two phases will run from 2030 to 2035 and from 2040 to 2050.

    The total cost is estimated at $16 billion. Experts have warned that the cost could double every five years in case of delays.

    Once completed, the airport will have an annual capacity of 100 million passengers and five million tons of cargo.

    The tourism surge in Vietnam in recent years has resulted in a demand for upgrades to existing airports and construction of new ones.

    The country received 12.5 million air passengers last year, up 14.4 percent from 2017, according to the General Statistics Office.

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  • World’s first digital mall launched in India by Digital Mall of Asia

    World’s first digital mall launched in India by Digital Mall of Asia

    In a revolutionary development that could potentially redefine the global retail and e-commerce industries, Digital Mall of Asia (DMA), a first-of-its-kind digital e-commerce platform merging the real estate and the digital spaces, has announced the launch of its Noida mall. The launch took place at the company’s registered office in the Film City, Noida, setting an unprecedented example of how online portals and brick-and-mortar retailers can transcend the digital-physical divide to optimize their consumer outreach and revenue generation.

    An initiative by Yokeasia Malls Pvt. Ltd., DMA is a disruptive innovation by an Indian organization recreating the experience of a physical mall in the digital space. In an industry where most of the key names are being run or backed by foreign players, this unique and disruptively innovative initiative by Yokeasia Malls has the potential to put the novelties of Digital India on the world map.

    The Need

    The launch of DMA Noida addresses the challenges that retailers often face and empowers them to maximize their business footprint with innovative digital offerings and an unmatched value proposition. DMA operates on a zero commission model; retailers at DMA don’t have to pay anything apart from the rent, a major revolution in a space where all the major E-commerce players charge somewhere between 5-35 percent of the revenue. Moreover, the organization will provide an immediate settlement of all payments received, ensuring complete transparency and reliability. It is also working towards completely eradicating the issue of the sale of counterfeit or fake merchandise. These unique features, apart from its focus on digital innovation, makes DMA a powerful and pioneering presence in the e-commerce space, both in India and on a global level.

    The Solution

    Going beyond the concept of a typical e-commerce portal, DMA’s Noida mall will have 11 towers with 10 floors each, adding up to a total of more than 5,000 shops and an available inventory currently worth approximately Rs 500 crore. The mall will incorporate visual and sensory elements to offer an immersive, stimulating environment and will have dedicated towers for different categories such as men, women, kids, electronics, home and kitchen, education, financial services, food court, hypermarket, digiplex, and online nightclub. Fundamentally, DMA Noida has all the elements that make up a physical mall, albeit virtually.

    The Value Addition

    By creating a new ‘digital asset’ class providing attractive returns, DMA also envisions to transform the general perception towards the term ‘investment’ while ensuring security, profit, and convenience for investors. The shops in the Noida mall are available for both sale (to investors) and rental (to retailers), whereas the shops in the rest of the 20 cities are available only to rent at present.

    Commenting on the launch and the idea behind, Rishabh Mehra, Managing Director and CEO – Digital Mall of Asia, remarked, “We, at Digital Mall of Asia, are beyond ecstatic to launch our Noida mall and we are certain of its potential to bring about a revolution in the digital and retail space worldwide. This project is aimed at serving many purposes, from an industry-wide transformation to retailer empowerment through our zero-commission model. But most importantly, DMA is our effort against data colonization. I wholeheartedly agree with Mr Mukesh Ambani’s stance on how India’s data must be owned by Indians, and not controlled by global corporations. In this era of data-driven revolution, we hope that DMA’s disruptive innovation sets an example for our contemporaries to follow through and bring the ownership of Indian data back to where it belongs – in our own hands.”

    The launch in Noida also marks DMA’s first step towards a pan-India launch in 20 cities including New Delhi, Mumbai, Bengaluru, Pune, Chandigarh, Jaipur, Lucknow, Coimbatore etc. After a pan-India expansion, DMA plans to expand its operations across the Asian market and has already begun the process of seller registration in China, Japan, South Korea, Malaysia, Thailand, Indonesia, and Singapore.

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  • Vietnamese firm seeks main investor status in Long Thanh airport

    Vietnamese firm seeks main investor status in Long Thanh airport

    The Airports Corporation of Vietnam (ACV) desires to be the main investor in the Long Thanh International Airport. ACV, which operates 21 airports in the country, has proposed that it contributes more than a quarter of the $5.4 billion needed to build the new Long Thanh International Airport. Lai Xuan Thanh, chairman of ACV, said that the corporation is ready to contribute $1-1.5 billion needed for the first phase of the mega airport to be built in Dong Nai Province, neighboring HCMC.

    In a proposal to the Ministry of Transport, ACV has said that its initial contribution will be used for major components of the airport including the terminal, runways, parking lots and cargo areas, worth a total of $3.77 billion, according to the Vietnamese government’s website.

    The airport operator is currently working with the Ministry of Transport and Dong Nai authorities on acquiring about 1,800 hectares for the first phase of the airport.

    Most of the targeted area is now covered by plantations belonging to the Dong Nai Rubber Corporation where 200 families reside.

    The Ministry of Transport has asked the consultancy consortium of the airport, JFV, to finish an environmental impact report next month.

    The consortium, comprising of three Japanese, one French and two Vietnamese companies, will also need to submit the feasibility report for the airport by June.

    In turn, the ministry “will submit the feasibility report to the National Assembly in October. If it is approved, bidding will start in 2020 and construction in 2021,” Transport Minister Nguyen Van The told local media recently.

    The Long Thanh International Airport, to be built in three phases over three decades, is set to become Vietnam’s largest airport.

    The first part is scheduled for completion in 2025, when the new airport will be able to handle 25 million passengers a year. The next two phases will run from 2030 to 2035 and from 2040 to 2050.

    Experts have previously warned that the construction cost of the airport could double every five years.

    Lying 40 kilometers east of HCMC, the airport is expected to take up the overflow from the largest existing airport in the country, Tan Son Nhat International Airport.

    Once completed, Long Thanh International Airport will have an annual capacity of 100 million passengers and five million tons of cargo.

    The tourism surge of recent years in Vietnam has resulted in demands for an upgrade of existing airports and construction of new ones.

    The country welcomed 12.5 million air passengers last year, up 14.4 percent from 2017, according to the General Statistics Office.

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  • Tenant reshuffles bring good revenue for CapitaLand Retail China

    Tenant reshuffles bring good revenue for CapitaLand Retail China

    CapitaLand Retail China boosted its distributable income by 9.4 per cent last year on the back of a new acquisition and improved performance of multi-tenanted malls. CapitaLand Retail China Trust Management (CRCTML), the manager of CapitaLand Retail China Trust (CRCT), reported a distributable income of S$99.7 million (US$73.5 billion) for the year.

    “CRCT delivered a resilient set of results in FY2018 on the back of strong operating performance,” said CRCTML CEO Tan Tze Wooi.

    Portfolio occupancy as at December 31 was 97.5 per cent and rental reversion was 10.9 per cent. Tenants’ sales at its multi-tenanted malls grew by 18.8 per cent year on year, while shopper traffic was up by 19.4 per cent.

    With the addition of Rock Square in the full-year figures for the first time, CRCT’s investment property value rose by 17.8 per cent to RMB13.993 billion (US$2.07 billion) as at the end of the year.

    CRCTML chairman Soh Kim Soon said China’s retail sales rose by 9 per cent last year.

    “China’s more moderate pace of growth is reflective of an economy undergoing transition and its long-term fundamentals remain positive. We are confident that CRCT’s quality family-oriented shopping malls will continue to benefit from China’s growing middle class and policies implemented to stimulate the economy,” he said.

    Highlights of the year included:

      • CapitaMall Wangjing posted a rental reversion of 15.7 per cent after converting 4700sqm of anchor tenant space on Level 4 to specialty stores. The mall’s Level 8 rental income will rise by around 50 per cent after transforming 500sqm of common area into leasable space for coworking operator Ucommune.
      • CapitaMall Xinnan netted 17.9 per cent in rental reversion by reconfiguring its Basement 1 space to accommodate more popular brands.
      • Since acquisition, Rock Square has achieved four consecutive quarters of rental reversions above 20 per cent and a double-digit year-on-year increase in average sales per square metre for specialty stores.

    Wooi said that in order to further optimise the portfolio, CRCT has entered into a bundle deal in Hohhot with unrelated third parties to divest CapitaMall Saihan and acquire a new mall that is double in size and has “a longer balance tenure”.

    “Given the new mall’s higher growth potential, CRCT will be in an even stronger position to tap Hohhot’s promising retail growth. The deal is structured to minimise income disruption as the closure and divestment of CapitaMall Saihan will take place after the new mall is operational in the second half of the 2020 [financial year]. Supported by CRCT’s strong financial position, we will continue to explore suitable acquisition opportunities to grow and rejuvenate our portfolio,” Wooi concluded .

  • Klang Valley malls performed slower last year due to competition

    Klang Valley malls performed slower last year due to competition

    Stronger performances from Gurney Plaza and East Coast Mall compensated for a lower contribution from CapitaLand Malaysia Mall Trust’s Klang Valley shopping malls last year. CapitaLand Malaysia Mall REIT Management (CMRM), which manages CapitaLand Malaysia Mall Trust (CMMT), released its results this week, revealing net property income of RM215 million (US$52.57 million) for the year. Its distributable income was RM161.3 million.

    “Gurney Plaza and East Coast Mall, which collectively accounted for about 68 per cent of CMMT’s net property income, continued their growth momentum last year,” said Low Peck Chen, CEO of CMRM. “This helped to moderate the lower contribution from our Klang Valley malls, which continued to be affected by increasing competition in the vicinity, as well as downtime for asset enhancement works and lower rents at Sungei Wang and The Mines.”

    During the final quarter of last year,  the company completed the asset enhancement works at Gurney Plaza’s Level 4 and improved the tenant mix at East Coast Mall’s ground floor. Tenants, several of them new to Penang and Kuantan, have progressively commenced operations at the newly renovated spaces.

    “We expect the completed asset enhancement initiatives at both malls to contribute positively to our performance going forward,” said Chen.

    In Kuala Lumpur, Sungei Wang’s reconfiguration of its annex is on track and new-to-market and novel experiential concepts will feature in the Jumpa lifestyle zone when it opens in the second half of this year.

    “We continue to refresh our tenant mix to meet the diverse needs of our shoppers, who can now find popular stores like Huawei, Sport Planet and Mr DIY at 3 Damansara, as well as home improvement store SSF and children activity centre Olympic Kids Club at The Mines,” said Chen. “At Sungei Wang, the newly renovated main anchor Giant will soon unveil a fresh concept to draw more shoppers.”

    David Wong, chairman of CMRM, said that against a backdrop of “increasing uncertainties in the global economy and concerns around the rising cost of living,” the company expects consumer and business sentiments to remain cautious this year.

    “Despite the challenging operating environment, we will continue to strengthen CMMT’s performance by proactively managing lease renewals and exploring opportunities in asset enhancement initiatives and acquisitions that will create value for our Unitholders.”

    CMMT is a shopping mall-focused Reit with five shopping malls: Gurney Plaza in Penang, a majority interest in Sungei Wang in Kuala Lumpur, 3 Damansara and Tropicana City Office Tower in Petaling Jaya, The Mines in Seri Kembangan and East Coast Mall in Kuantan, Pahang. The portfolio has a total net lettable area of more than 2.9 million sqft and was valued at RM4.1 billion at the end of last year.

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  • ICONSIAM in the newest global attraction in Thailand

    ICONSIAM in the newest global attraction in Thailand

    ICONSIAM, the mega city project of futuristic living and an iconic landmark of Thailand’s eternal prosperity on the Chao Phraya River, held the inauguration ceremony for Thailand’s new global attraction on the Chao Phraya River known as the “ICONIC Multimedia Water Features”, which is one of the Seven Wonders of ICONSIAM. The city project is the result of the collaboration of the Tourism Authority of Thailand, the Pacific Asia Travel Association (PATA), the Association of Thai Travel Agents (ATTA), the Thailand Convention and Exhibition Bureau (TCEB), Bangkok River Partners, the Association of Chao Phraya Commerce, the Thai Shipping Association as well as other related agencies and organisations.

    At over 400 metres, it is the longest water dance in Southeast Asia featuring a combination of light, colour, sound and multimedia and set in front of beautiful vistas across the Chao Phraya River. It seeks to glorify and highlight the grandeur of the river for the world to be impressed while attracting local and international visitors to the Chao Phraya River.

    Held at River Park, ICONSIAM, the opening ceremony was attended by the most distinguished people from agencies, organisations, and associations playing an important role in driving tourism in Thailand forward, together with business partners of ICONSIAM as well as many celebrities who joined to witness the momentous occasion.

    Among the well-known celebrities present were the Gubgib-Bie-Pao Pao family, Esther Supreeleela, ‘Ken’ Phupoom Pongpanupak, AF alumni namely Nim, Tee, Baimon, Focus, Mac, Ploysai, Bass, Jackie, Ice, ‘Jeab’ Sopidnapa Chumpanee Dabbaransi, ‘Mona’ Wipawee Korman, ‘Jan’ Siranuj Rojanasatien, Ploy Mahadumrongkul, ‘Kat’ Wantita Lewchalermwong, ‘Ming’ Suwara Sanitwong Na Ayudhya, ‘Yingair’ M.R. Chanladda Yukol, Lina Leenutapong Amornsiri and Jarudej Boonyasit, and many more.

    Mrs. Chadatip Chutrakul, Director of ICONSIAM Co., Ltd., said, “ICONSIAM marks the bringing to life of the concept of ‘Creating Shared Value’ on a scale as never before been seen anywhere in the world.

    The ‘Chao Phraya Master Vision’ was announced 5 years ago, pioneering a historical and national collaboration among multiple different enterprises, the government and private sectors, historic locations, civil society, 5-star hotels and communities along the riverside.

    Since its launch, there have been many collaborations, with the best example being the Amazing Thailand Countdown 2019 and its fireworks display which was viewed by more 1.5 million people.

    ICONSIAM itself welcomed more than 200,000 visitors in a single day for the event. The event brought fame to Thailand and let the world witness the grandeur and beauty of the Chao Phraya River via the world’s leading media such as CNN, BBC, and Reuters. This is a part of the collaborations envisaged in the ‘Chao Phraya Master Vision’ to help make the Chao Phraya River a significant global destination for tourism.”

    ICONSIAM is a city that is the centre of a vast array of wonders in art and culture. It offers the best in shopping and entertainment made possible through the collaboration of business organisations that are both big and small.

    A lot of individuals have come together from different professions. They share a desire to build a venue where all that makes Thais can be presented in the most exquisite way possible. They come together to build a new icon which will become a mega phenomenon that will epitomise ‘Creating Shared Value’, uniting all stakeholders and spreading prosperity to communities, society and the nation. This is embodied in every element within ICONSIAM, and especially the seven wonders.

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  • Retail meets art in HK for Chinese New Year

    Retail meets art in HK for Chinese New Year

    Next week it Chinese New Year. It officially begins on February 5th, 2019, and ends on February 19th. This year will be the year of the Pig. It is the most important festival for Chinese people, so the city is fully decorated with festive installations. The retail world celebrates it with decorations and promotions. In Hong Kong, all shopping malls have already unveiled their gigantic installations.

    In the financial heart of the city,  the floral pinwheels have turned IFC into the Garden of Fortune.

    Dedicated to providing memorable and engaging experiences for guests beyond shopping and dining, the Chinese New Year is no exception for IFC mall as it presents The Garden of Fortune, a splendid installation featuring pinwheels to welcome good fortune and embrace new changes along with incorporating floral elements for a contemporary spin.

    From 26 January to 17 February 2019, shoppers can visit the interactive display and enjoy music performances to ring into an auspicious new year.

    Pinwheels have long been a symbol of luck with fascinating roots in Chinese culture. Traditionally associated with welcoming wealth, pinwheels are constructed using a variety of bright colors to greet the god of fortune, which are believed to bring prosperity and blessings to both homes and businesses. Playing on the Chinese tradition that pinwheels attract good luck, The Garden of Fortune is embellished with this auspicious symbol.

    The pinwheels are designed in the shape of peach blossoms, peonies and begonias – flowers that represent prosperity and fortune in Chinese culture – to empower guests with positive vibes as they walk through the Garden of Fortune.

    Upon entering the installation, guests are invited to play an interactive pinwheel game to start the new year with blessings to share and bestow upon friends and loved ones. ifc mall has collaborated with young local calligrapher, Rita Lee, to create downloadable “fai chuns” to share with family and friends after completing the game.

    Lee started learning Chinese calligraphy at the age of 6 and has nurtured her talent with over 20 years of experience. She is known for blending different styles to create art that balances the tradition of Chinese calligraphy with contemporary flair. “I’m excited about this partnership with ifc mall as it allows me to use my craft to extend blessings to all Hong Kongers who visit the Garden of Fortune,” says Lee. “The installation’s fusion of traditional pinwheels with modern floral elements also reflects the same juxtaposition in my style of calligraphy.”

    Pacific Place has built “Where Fortune Takes Flight” to welcome the Chinese New Year 2019. Queenie said that her design ideas come from the traditional Chinese New Year Candy box and chocolate from her childhood. Thus, they became the patterns of the kites, flying in the shopping mall. Queenie used vibrant colors and energetic brush strokes to draw on the kites, symbolizing a colorful and fruitful new year.An exquisite spring garden filled with blossoming flowers and over 60 flying kites, symbolising “Where Fortune Takes Flight”. Exclusively designed by Queenie Law, the kites soar to the highest heights and spread Chinese blessings throughout the mall and into the new year ahead.

    In Tsim Sha Tsui, Harbour City will welcome the Year of the Pig with the “HAPPIG New Year” celebration, featuring a seven-metre tall gigantic “Wishing Treasure Bowl” at Ocean Terminal Forecourt from 25 Jan to 19 Feb 2019.

    The treasure bowl is structured with multiple frames, on which colorful ropes were tied delicately to create geometrical festive patterns from cherry blossoms to gold coins.

    The contemporary design is a stylish take on the Chinese New Year classic, wishing everyone joy and fortune for the Year of the Pig.

    Newly introduced this year is an interactive wishing experience, inviting visitors to win a lucky pouch by taking part in a mini game and donating HK$20 near the“Wishing Treasure Bowl” installation.

    Each lucky pouch contains a Good Fortune Card with predictions for the coming year, and a “Wishing Gold Coin” which can be deposited into “Make a Wish Piggy Bank” for making a wish. The coin will roll through a lucky tunnel connecting the piggy bank to the gigantic “Wishing Treasure Bowl”, bringing fortunate blessings to everyone for the New Year.

     

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  • Hong Kong retail rents tipped to turn

    Hong Kong retail rents tipped to turn

    Hong Kong retail rents are tipped for a modest rise of up to 5 per cent this year according to a research report from real estate advisor Savills. But the authors, Nick Bradstreet, MD, head of leasing and Simon Smith, senior director, research & consultancy, noted that this year has already got off to a positive start. “Landlords and retailers are wary given current uncertainties surrounding trade, stock market valuations, a weak renminbi and rising interest rates among other factors,” said Bradstreet. “But early indications are that the year has got off to a positive start.”

    Smith added: “The well-observed shift towards higher same day mainland visitor numbers and lower per capita spending continued last year and we believe that this year can expect more of the same.”

    Both prime street-shop and shopping-centre rents remained flat last year and rental growth had all but ground to a halt by the fourth quarter due to a weak sales performance, the report said.

    However, the new cross-border bridge and rail link led to a 40.3 per cent year-on-year rise in same-day mainland visitor arrivals in November to 3 million. The number of mainland tourists actually rose during the first 11 months of last year by 14 per cent.

    Smith said the increasing number of same-day visitors and a weak renminbi meant lower per-capita spending and unchanged retail rents by year end.

    “Retail sales growth decelerated to only 1.4 per cent in November, the slowest growth rate registered since June 2017; yet most retailers reported a better-than expected performance over the Christmas holiday period.”

    Thanks to the strong tourist demand, cosmetics and personal care products retailers are expanding rapidly in popular tourist districts such as Causeway Bay, Tsim Sha Tsui and Mong Kok. Food and beverage stores benefited, too, the report said.

    On the contrary, the fourth quarter saw zero rental growth over the previous quarter in prime street shops in most districts, except Tsim Sha Tsui (down -0.9 per cent quarter on quarter). Whilst shopping malls in Kowloon were largely responsible for the marginal decrease with a negative 0.3 per cent change over the third quarter, mall rents remained unchanged on Hong Kong Island and in the New Territories.

    “As a total of 2.3 million sqft of new supply will come on stream this year – the highest level since 2006 – the market fundamentals are expected to remain relatively stable.

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  • The most expensive place to rent an office in the world

    The most expensive place to rent an office in the world

    Central, Hong Kong’s frenetic business and retail heart, crammed with skyscrapers, swanky malls and luxury hotels, is the most expensive district for renting office around the world. Although the office rent in Hong Kong’s Central district is already the world’s most expensive, and there are more and more companies moving out of the city centre to cheaper locations, prices are likely to remain sky high, or even higher.

    Hong Kong is the key financial centre in Asia, and Central is still the most important financial district in the city. Thus, the office rent in Central district is predicted to increase continuously.

    According to Raymond Chow, the Executive Director for Commercial Property at Hongkong Land, Central’s largest office landlord, “Central is still the home to the city’s most influential institutions, such as the Securities and Futures Commission, The Stock Exchange of Hong Kong and Hong Kong Monetary Authority, the connectivity of Central remains a magnet for leading players” he added,  “It is in a way that other districts cannot compare.”

    In June 2018, Central was ranked the most expensive office location in the world for the third year by global commercial real estate firm CBRE, thanks to the strong demand from mainland tenants, who would like to expand their business outside China and seeking Grade A office space.

    Office space in Central now costs USD $306 per square foot, 30 per cent higher than the second highest area, London’s West End, at US$235 per square foot.

    Of the top 10 most expensive premium rental locations, six were in Asia, including Shenzhen, Beijing, Tokyo, and Delhi.

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  • Keppel to sell 70 pct stake in Vietnam waterfront township

    Keppel to sell 70 pct stake in Vietnam waterfront township

    Singapore-based Keppel Corp will sell 70 percent stake in a waterfront township project to a Vietnamese investor for $100 million. The company said in a release Monday that, pending certain developments, it will sell its stake in the Dong Nai Waterfront City Company (DNWC) to Ho Chi Minh City-based Nam Long Investment Corp for VND2.31 trillion ($99.72 million).

    The DNWC is a company incorporated under Vietnam’s laws that has been granted the right to develop the Dong Nai Waterfront City township project.

    Keppel Land, Keppel’s real estate arm, is currently in the process of taking over complete control of DNWC from an unnamed joint venture partner through a demerger.

    Once the demerger is done, DNWC will become a wholly-owned subsidiary of Keppel with the rights to develop a 170-hectare plot of land.

    DNWC also holds a 28-hectare plot of land which is excluded from the proposed divestment.

    The 70 percent stake sale will depend on demerger going through.

    Dong Nai Waterfront City is a 170-hectare residential township project in Dong Nai Province, located 28 kilometers to the northeast of HCMC.

    It will have about 7,850 homes, including townhouses, villas and high-rise apartments with various commercial facilities.

    Keppel Corp said that the stake sale was in line with Keppel Land’s strategy to recycle assets for higher returns. The funds generated will be used to pursue other opportunities in Vietnam, it said.

    The Dong Nai Waterfront City will be Keppel Land’s second township project in Vietnam after the 64-hectare Saigon Sports City in HCMC’s District 2 which is under construction.

  • New commercial landmark set to open at Huaihai Road

    New commercial landmark set to open at Huaihai Road

    Chinese mall operator Bailian is merging two disused department stores on Shanghai’s Huaihai Road in partnership with urban renewal firm URF to create Theatre X. The two malls on the city’s prime retail street were formerly trendy shopping destinations. Huating Isetan on 527 Huaihai Road M was the first Japanese Isetan outlet in China, while Bailian’s No.1 Department Store next door once enjoyed great popularity – both commercial gems of the 1990s.

    The new Theatre X shopping mall will merge the two sites, according to an announcement, and offer “interactive and immersive experiences” to consumers. The 25,000sqm property will offer popular international brands, shared spaces for pop-ups, and exhibition stages for Ted Talks – with developers expecting the venue to become a “pilgrimage site for trendsetters.” It will feature a 40m-high waterfall and giant digital screens.

    Theater X is set to open in September, with further developments in the immediate vicinity expected to follow.

  • Retail project “Taikoo Li Qiantan” Shanghai opens door

    Retail project “Taikoo Li Qiantan” Shanghai opens door

    Swire Properties and Lujiazui Group officially announced the naming of their joint-venture retail project as “Taikoo Li Qiantan”. Located in the heart of the Pudong Qiantan International Business District, this project embodies Swire Properties’ “Taikoo Li” concept, which is well-known for its distinct open-plan, lane-driven architectural design.

    Taikoo Li Qiantan will offer a gross floor area of approximately 1.3 million sq ft (120,000 sqm) and was created in accordance with a ‘naturalism’ design concept; blending elements found in nature with contemporary architecture. The project is a major component of a larger mixed-use development, which will also feature a 56-floor Grade-A office tower – “New Bund Centre” as well as a five-star luxury hotel – “New Bund Shangri-La Hotel”, both invested by Lujiazui Group.

    Qiantan is a new international business district and a rapidly developing hub for art and culture, business, entertainment, residential and world-class sporting facilities. The area is fast-becoming known for its high quality of life and excellent accessibility thanks to the well-developed transportation infrastructure. Qiantan is already home to many multinational corporations and global institutions, including New York University Shanghai and Wellington College International Shanghai. The project will be directly connected to the Oriental Sports Centre metro station which comprises three metro lines – offering direct access to major residential and commercial districts including Lujiazui, Xujiahui, People’s Square and Disneyland.

    Mr Xu Erjin, General Manager of Shanghai Lujiazui Group said, “Following the success of The Bund and Lujiazui, we are confident that the Qiantan International Business District will become yet another remarkable CBD, and our plan is to create a ‘Lujiazui 2.0’, which builds on the successful elements from Lujiazui.

    “Qiantan is quickly becoming a landmark area in Shanghai, and Taikoo Li Qiantan will be a valuable addition to this district, offering unparalleled retail, F&B and leisure experiences to local communities and the greater Shanghai population.”

    Mr Han Zhi, Director-Retail of Swire Properties, said, “Taikoo Li Qiantan marks our third ‘Taikoo Li’ project in Mainland China building on the success of Taikoo Li Sanlitun in Beijing and Sino-Ocean Taikoo Li Chengdu. We are delighted to bring this distinct retail experience to Shanghai. By once again combining local elements with the Taikoo Li concept, we are confident that our second major investment in Shanghai, after the successful launch of HKRI Taikoo Hui in 2017, will become a new retail landmark for residents and visitors.”

    Taikoo Li Qiantan has commenced the leasing process, and is scheduled to open in phases beginning from the end of 2020.

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