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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.

  • Dalian Wanda to open 17 malls this month

    Dalian Wanda to open 17 malls this month

    Chinese real estate developer Dalian Wanda Group will reportedly open 17 shopping centres this month.

    The group recently opened its 300th plaza in Hubei province, a 105,000sqm shopping centre based in Xianning – the first enclosed mall in the city – including a 275m indoor shopping street and an Imax theatre, as well as hosting 200 retailers.

    Wanda is poised to open four new plazas on December 20, followed by three on December 28 and 31. The group intends to operate 323 plazas in total by the end of the year, the majority of new locations in low-tier cities.

    The group has opened centres in 188 cities in 30 provinces nationwide.

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  • SM Markets launches 24-seven shopping in 29 stores

    SM Markets launches 24-seven shopping in 29 stores

    Selected SM Markets stores in the Philippines are to open 24 hours a day to take advantage of the holiday buying surge.

    The Filipino food retailer said shoppers, especially night workers and those leaving holiday shopping to the last-minute, will now be able to shop at its 29 stores even during the wee hours.

    “Morning people can finish their groceries even before getting ready for work and those who hate crowds can now choose to shop at later hours for their convenience,” added SM markets.

    The 24-hour shopping has kicked off at SM Hypermarket located at SM Mall of Asia, which will be open around the clock until December 30 except for on Christmas Day.

    And from December 16 until 23, SM Hypermarket stores in Fairview, North Edsa, Pasig, Marketmall, Jazz, Las Pinas, Sucat, Lopez, Bicutan, Clark, Taytay, Novaliches, Monumento, Cainta, Antipolo and Cherry Congressional will also start operating 24 hours a day. Those stores will also trade nonstop from December 28-30.

    The complete list of 29 stores is available here.

    SM Markets has more than 300 stores nationwide across SM Supermarket, SM Hypermarket and Savemore brands.

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  • CapitaLand sells The Star Vista in Singapore

    CapitaLand sells The Star Vista in Singapore

    CapitalLand has signed an agreement to sell The Star Vista to Rock Productions for S$296 million (US$217 million).

    The deal is about 13 percent higher than the property was valued at last June.

    Opened in 2012, The Star Vista shopping mall has a net lettable area of about 162,500sqft  with major tenants including Beauty in the Pot and LeNu, Canton Paradise Teahouse, Redman by Phoon Huat, Swee Lee and Cold Storage. Located next to the Buona Vista MRT Interchange, The Star Vista is part of a 15-story integrated development which also includes a 5,000-seat auditorium.

    The divestment, which is planned to be completed this year, is expected to generate a net gain of about $32 million for CapitalLand.

    “The divestment of The Star Vista is in line with CapitaLand’s active and disciplined asset recycling strategy,” said Jason Leow, president at Singapore & International at CapitaLand Group.

    “Year to date, CapitaLand has divested close to $5.7 billion worth of assets, exceeding our annual target divestment of $3 billion. The proceeds from these divestments will enhance CapitaLand’s financial flexibility to seize new growth opportunities.”

    Rock Productions owns The Star Performing Arts Centre which co-located with The Star Vista.   CapitalLand now owns 19 malls, including one under development, in Singapore after the agreement.

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  • Hong Kong’s Causeway Bay still top of the world’s most expensive retail strips

    Hong Kong’s Causeway Bay still top of the world’s most expensive retail strips

    Hong Kong ́s Causeway Bay remains top of the world’s most expensive retail strips, with rents rising to US$2745 per square feet per annum, 2.3 per cent higher than last year.

    New York ́s Upper 5th Avenue, with annual retail rents at $2250/sqft, retained the number two position on Cushman & Wakefield ́s latest rankings. Singapore’s Orchard Road does not appear in the top10, due to its retail stores considered to be almost exclusively inside shopping centres rather than defined as ‘high-street’.

    Completing the top five are New Bond Street in London, followed by Avenue des Champs-Elysees in Paris and Milan’s Via Montenapoleone.

    The top 10 worldwide shopping streets by rent (in US$/sqft/year):

    1 Causeway Bay (Hong Kong) – $2745

    2 Upper 5th Avenue (New York) – $2250

    3 New Bond Street (London) – $1714

    4 Avenue des Champs-Elysees (Paris) – $1478

    5 Via Montenapoleone (Milan) – $1447

    6 Ginza (Tokyo) – $1251

    7 Pitt Street Mall (Sydney) – $1076

    8 Bahnhofstrasse (Zurich) – $886

    9 Myeongdong (Seoul) – $862

    10 Kohlmarkt (Vienna) – $513

    Greater China represents seven of the top 20 Asian locations in the world’s most expensive retail strips, including Hong Kong (1st), Beijing (6th), Shanghai (8th), Shenzhen (11th), Guangzhou (13th), Taipei (15th) and Nanjing (20th).

    Major cities in China continue to see a significant amount of new retail developments, with activities being driven by both domestic and international retailers, with the latter continuing to pursue a strategy of opening in multiple locations.

    In Hong Kong, increasing pressure on rents continues as a result of growing local political unrest and the ongoing US-China trade tensions.

    Bonifacio High Street in Taguig, Greater Manila, in the Philippines recorded the biggest rental decline in Asia Pacific, posting 28.6-per-cent decrease.

    In Australia, rents in some locations have fallen, particularly in CBD strip retail areas. In contrast, rents on some of the higher footfall pitches have increased, including Sydney’s George Street.

    In the Americas, recent rental trends have varied by location, with high-street rents in some areas in Canada and the US remain under pressure.

    Retail rents in around 70 percent of the locations in Europe have generally stabilized despite the increasing polarisation.

    “In terms of rental performance, this year’s results are encouraging and demonstrate the resilience of the premier retail locations,” says Darren Yates, head of EMEA retail research at Cushman & Wakefield.

    “Rents on the world’s most expensive retail strips have been fairly stable and there is greater clarity on where retail is heading. However, there is downward pressure on rents in many weaker locations, particularly in the more mature markets of Europe and North America.  In Asia Pacific, retail has generally performed well across a very diverse group of markets.”

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  • Malaysia’s The Weld shopping centre for sale

    Malaysia’s The Weld shopping centre for sale

    Great Eastern Life Assurance Malaysia will sell the Menara Weld office building and The Weld Shopping Centre in Kuala Lumpur.

    Both properties, which have been under ownership by the insurance firm for 16 years, have been priced with a reserve of RM270 million (US$65 million) and will be sold by tender. They contain 400,000sqft net lettable area collectively.

    The buildings have been assessed in need of upgrading, although a complete redevelopment of the site could be an option for buyers. Industry observers have picked Hap Seng Consolidated as a good potential buyer for the buildings given its ownership of several nearby office towers.

    Great Eastern maybe releasing the asset as a consequence of its recent development of a Grade A Equatorial Plaza office building nearby, which is just 60-per-cent leased.

    The closing date for tender is December 4.

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  • The Shilla wins Macau duty-free concession

    The Shilla wins Macau duty-free concession

    The Shilla has won the race to operate one of the two Macau duty-free concessions at the territory’s international airport.

    The five-year agreement allows the firm to operate half the airport’s duty-free space, a roughly 1122sqm area at the north departure level airside of the passenger terminal. The firm has run some duty-free services at the airport since 2014 in cooperation with Hong Kong duty-free retailer Sky Connection. The new concession has been awarded to Shilla alone.

    Aggregate revenue on the space is likely to approach US$600 million over the course of the contract.

    Stores at the new area are expected to focus on Korean beauty products targeted at Chinese travelers.

    “We have been sharpening our edge on beauty as customers have been recognizing us as a beauty powerhouse,” said a Shilla spokesperson to TRBusiness. “We are launching exclusive products and collaborating with new media.”

    Shilla now has five international locations that also include Singapore, Hong Kong, Phuket and Tokyo.

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  • Bangkok’s IconSiam awarded four ICSC honours

    Bangkok’s IconSiam awarded four ICSC honours

    Bangkok’s IconSiam has won four first prizes at the International Council of Shopping Centers’ (ICSC) Asia Pacific award program.

    That sets a record for the highest number of first prizes in the awards program history.

    IconSiam was named Best New Development, recognized for creating “a globally innovative model” that offers cultural variety in restaurants, activities, entertainment, together with many different choices in shopping.

    IconSiam’s ‘SookSiam’ concept was named Best support to Businesses category as it presents the cultural heritage of the four main geographic regions in Thailand in a setting similar to a traditional Thai market. SookSiam outlets were established in the styles of their respective regions, offering local crafts and cuisine.

    “It is a platform that brings together hundreds of small, mom-and-pop operations from across Thailand’s 77 provinces,” said Chayapong Naviroj, CEO of SookSiam. “We support them with merchandising and marketing ideas to help them penetrate international markets. Most of the people selling here have never operated out of their hometowns before, but now sell on a globally visible platform.”

    The third honor was the title of Best Grand Opening, recognizing last November’s opening event which drew thousands of people and included shows including the largest flying drone display ever organized in Southeast Asia and a performance by Alicia Keys.

    IconSiam also won top honors in the Best Public Relations category having drawn more than 1000 local and international journalists to the opening and driving IconSiam to become the most popular topic in social media within a month. “#IconSiam” was the number 1 top trending on Thailand’s Twitter.

    Senior VP marketing of Siam Piwat, Mayuree Chaipromprasith, said the effectiveness of communications is essential to IconSiam’s success because it helps fulfill the purpose of serving as a platform to attract global attention to the best of Thailand.

    “We invest heavily in marketing and communications activities as well as in on-the-ground activities to ensure that IconSiam is constantly an exciting place to visit.”

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  • Singapore retail rents up as vacancy rate tightens

    Singapore retail rents up as vacancy rate tightens

    Singapore retail rents increased in the third quarter of this year, according to Urban Redevelopment Authority.

    Figures published by The Straits Times show the rental rates increased by 2.3 percent, overturning a fall of 1.5 percent during the previous quarter.

    According to the URA, the total supply of retail space available in ongoing projects within the territory stood at 288,000sqm, a reduction from 320,000sqm previously. Occupied retail space went up by 29,000sqm, as opposed to 74,000sqm in the second quarter.

    This is what drove the turnaround in Singapore retail rents in the three months to September 30, says the URA.

    Vacant retail space across the island now stands at 7.5 percent. This despite the opening of major shopping destinations Funan mall in downtown Singapore and Jewel Changi at the airport this year.

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  • Saigon retail rents rise

    Saigon retail rents rise

    Saigon retail rents are rising with space in the CBD hitting an average of US$135.50 per square meter in the third quarter, up by 5.8 percent year-on-year.

    According to a report by real-estate company CBRE, the average monthly rents outside the CBD were only US$35.80 per square meter, down 3.7 percent quarter on quarter.

    Saigon is commonly used to refer to the CBD, or District 1, of Ho Chi Minh City, Vietnam’s largest population center.

    As several shopping centers have witnessed renovation and tenant mix revision, abandoned retail space rates increase by 2.5 percent and 8 percent in CBD and non-CBD areas, respectively.

    Ho Chi Minh City has become attractive to many investors and developers as a growing number of international retailers have chosen the city for their Vietnam debut.

    The nation’s retail industry has also been drawing investment from offshore, with recent deals including Japanese apparel company Stripe International buying Vietnamese fashion brand Vascara, and a franchise agreement which will see South Korea’s CU convenience stores open next year. With the evolution of the industry, retail rents in Ho Chi Minh City are expected to continue to increase in the near future.

    The city is predicted to add a further 237,000sqm of new retail space next year, including a new Vincom Megamall project in District 9 but it has yet to be seen how the new supply will impact on Saigon retail rents.

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  • Vincom Retail unveils three shopping centre plans

    Vincom Retail unveils three shopping centre plans

    Vietnam’s Vincom Retail has announced three new Vincom Mega Mall shopping centres.

    Two of the new properties will be located in Hanoi and the third in Ho Chi Minh City, the country’s commercial capital.

    Located in one of the largest real estate projects in Hanoi, Vincom Mega Mall Ocean Park will occupy 56,000sqm, and serve up to 1.5 million customers annually. Vincom says the mall’s design was influenced by “subterranean movements” and the blue waterfront.

    Also in Hanoi, Vincom Mega Mall Smart City will feature a design concept inspired by future technology trends. The new shopping centre will cover 68,000sqm and has a catchment of 1.8 million potential customers, primarily millennials.

    The third shopping centre, Vincom Mega Mall Grand Park, will open in District 9 of Ho Chi Minh City. The mall will occupy 48,000sqm of commercial space, over five floors and one basement level.

    Vincom Retail’s deputy director of sales and marketing, Tran Thu Hien, said there are four key elements the company believes will secure Vincom Mega Mall’s success: the product structure, customer base, tenancy partnerships and inspirational marketing.

    According to real estate company CBRE, Hanoi and Ho Chi Minh City will potentially become on the top three retail markets in Asia-Pacific.

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  • Frasers Property announces leadership changes for Singapore

    Frasers Property announces leadership changes for Singapore

    Frasers Property Singapore CEO Christopher Tang will retire at the end of the year.

    From January 1, Tang will assume the new position of senior adviser, while continuing to serve as a director on the boards of Frasers Property (Singapore), Frasers Centrepoint Asset Management and Frasers Commercial Asset Management.

    “It has been an incredible journey being part of the Frasers Property Group growth story and leading Frasers Property Singapore has been an honor and privilege,” said Tang. “The planned retirement reflects my personal desire to participate in the group’s continual growth in a different leadership capacity.”

    The company also announced an evolution of its Singapore business organization as part of its planned leadership changes.

    A retail-focused platform will be created in Singapore, which will cover the asset, property and development management of its retail assets in the city. The new platform will become a retail-focused business unit in Singapore from October 15, representing an asset size of about SG$8 billion (US$5.8 billion) with development, asset management and property management capabilities in respect of retail assets held across Frasers Property Singapore and FCT.

    Low Chee Wah will be appointed as CEO of the Singapore retail platform

    “Our retail business in Singapore has grown rapidly over the years,” said group CEO Panote Sirivadhanabhakdi.

    “We believe the focused retail platform will allow us to better serve the needs of our customers in this fast-evolving retail landscape. We are looking forward to building upon the meaningful scale of the group’s retail network while further developing our retail capabilities and leadership position for this asset class in Singapore.”

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  • Here We Come, Osaka! Centara Signs Historic Deal forFirst Japanese Property

    Here We Come, Osaka! Centara Signs Historic Deal forFirst Japanese Property

    Centara Hotels & Resorts, Thailand’s leading hotel operator, together with Taisei Corporation and Kanden Realty & Development, announced a landmark agreement to bring the Centara brand to Japan. The three companies signed an Investor Agreement for Centara Grand Hotel Osaka, an upper upscale property with 515 keys that will occupy a gleaming 34-storey tower on a prime site in Osaka’s Namba district, the centre of leisure tourism for the city and the wider Kansai region. Centara’s first property in Japan is scheduled to open in mid-2023.

    The investment partnership between Centara Hotels & Resorts, Taisei Corporation and Kanden Realty & Development marks Centara’s entry into one of the world’s most popular tourist destinations. Osaka is a key gateway city and Japan’s third largest city, with a population of 2.7 million. Additionally, it is one of the leading Japanese destinations for international visitors, second only to Tokyo, and is considered the cultural heart of the nation. Along with popular attractions such as Universal Studios Japan and the city’s proximity to Kyoto, Kobe and Nara, Osaka is expected to see a further boost in tourism when the city hosts the World Expo in 2025.

    “Extending the Centara footprint to Japan has been a long-term strategic objective for the company, and this is a major milestone for the Centara brand as we have successfully added the 14th country to our portfolio,” said Thirayuth Chirathivat, Centara’s CEO. “This an exciting opportunity to partner with Taisei and Kanden Realty & Development, whose outstanding track records have earned leading positions in construction and property development. We are looking forward to making Centara’s debut and ongoing development in other Japanese cities a great success.”

    “This project is in Namba, an important and bustling district of Osaka and a place of international exchange. It is directly connected to Kansai International airport, making it one Japan’s major gateway cities to the world” said Senior Managing Executive Officer, Taisei Corporation, Katsuyuki Kanai. “It is really a significant milestone both to Japan and to Taisei that Centara, representing Thailand in tourism and hospitality, has embarked on this venture in Namba, the perfect location in Japan for the development of an upper upscale hotel.”

    “As a major Property Development Company based in Osaka, we are honoured to play an important role in this joint investment project to develop Centara Grand Hotel Osaka with such a significant and established Thai partner, Centara Hotels & Resorts, and with Taisei Corporation, who has a long and proven record of success,” stated Managing Executive Officer, Kanden Realty & Development, Munetaka Isoda. “We are committed to working with you in making every effort to ensure the success of this project and we wish you all a very warm welcome to Osaka.”

    The newly built hotel will occupy a stunning new 34-storey tower overlooking Namba Parks, with 360-degree views of the city. The top floors will include a lounge along with customisable space for meetings and events, plus a rooftop restaurant sky bar providing panoramic views in every direction.

    Facilities will include award winning Spa Cenvaree, a fully equipped fitness centre, a diverse selection of restaurants and banquet facilities. And the hotel’s spacious lobby will welcome guests with touches of Thai and Japanese style and ambience.

    The hotel location puts guests at the doorstep of some of Osaka’s leading entertainment, shopping and cultural attractions, popular with visitors and locals alike. A few steps away is Namba Parks, an architectural marvel and the city’s most distinctive mall, complete with a massive rooftop garden with cliffs, ponds, streams and waterfalls, making it a must-see for tourists. The Namba area, also known as Minami, is home to countless restaurants and bars, shopping venues, an electronics district, as well as one of Osaka’s most revered Shinto shrines.

    The addition of its first property in Japan is further proof of Centara’s expansion strategy, which calls for doubling the number of properties under its management by 2022. Centara’s expertise, combined with the local market presence and development experience of Taisei Corporation and Kanden Realty & Development, are sure to boost Centara’s Japan market launch toward long-term success.

  • SM Prime to open lifestyle mall in Zambales

    SM Prime to open lifestyle mall in Zambales

    SM Prime Holdings is launching a new lifestyle mall in Zambales, the Philippines.

    The firm’s 73rd shopping mall in the territory, a 72,000sqm four-story complex, will open in Olongapo city’s CBD with 85 percent tenant occupancy confirmed so far. It is SM Prime’s second lifestyle mall in Olongapo.

    “Olongapo City remains one of the fastest-growing cities in Central Luzon creating a wonderful synergy on economical and sustainable development,” said SM Prime president Jeffrey Lim. “SM City Olongapo Central will not only enhance the beauty of this thriving city and its province but will also create more jobs and business opportunities to locals who aspire to grow with our company.”

    The mall will feature a food hall, cyber zone, and wellness zone along with six digital cinemas and a convention center, as well as a sports and entertainment venue.

    “SM Prime remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people,” read a statement by the firm.

  • CapitaLand opens new Raffles City mall in Chongqing

    CapitaLand opens new Raffles City mall in Chongqing

    Capitaland has opened a Raffles City mall in Chongqing, China.

    The first component in the 1.12 million sqm megastructure to be opened to the public was the development’s 235,000sqm shopping mall, which launched on September 6 with 95 percent committed occupancy. About 40 per cent of the more than 400 international and local brands are new-to-market brands for the city, flagships or new concept stores.

    Located in Chaotianmen, it is Singapore’s and Capitaland’s single largest development in China at RMB24 billion (US$3.37 billion).

    “The opening of Raffles City Chongqing marks a new milestone in Capitaland’s contribution towards and benefiting from China’s urbanization push,” said Capitaland Group president, China, Lucas Loh.

    “As the ninth Raffles City development to turn operational, it is by far our largest and most complex integrated development. Seven years in the making, Raffles City Chongqing is a megastructure that melds astounding architectural design with sustainable urban planning. The development was purposefully built to spearhead the renewal of the Chaotianmen riverfront district with world-class live-work-play amenities and improved accessibility.”

    “As the representation of Capitaland’s new-gen malls in China, Raffles City Chongqing combines experiential retail concepts with digitalization to excite and engage shoppers,” said Capitaland CEO commercial management, China Chin Phei Chen.

    “Value-added services such as augmented reality navigation, restaurant booking and carpark reservation are supported by the Capitastar app. In addition to curating an attractive tenant mix, we have also created public spaces with regular art and heritage showcases for the public to enjoy, learn and discover.

    “Raffles City Chongqing is at once a showcase of local culture to the world and a beacon of international sophistication in the aspiring global city; in short, a destination for both residents and tourists,” he said.

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  • Shopping malls in the Philippines popularity on the rise

    Shopping malls in the Philippines popularity on the rise

    Shopping malls in the Philippines are bucking international trends and are trading stronger than ever, says retail technology expert Nikki Baird.

    Their secret, she says, is that they offer a wider range of experiences to customers.

    “Shopping malls in the Philippines are all-in-one destinations that not only provide shopping, dining, and entertainment but also offer community events, access to government and utility services, and even places of worship,” Baird told the recent National Retail Conference and Expo in Manila.

    But, she warned, neither mall operators or their retail tenants in the Philippines can afford to be complacent because the industry is constantly changing.

    “The rise of e-commerce, evolving consumer tastes, dynamic competition, and other developments in the global retail landscape challenge Philippine retailers to pursue innovations in both brick-and-mortar and digital stores.”

    Baird, VP of retail innovation at Aptos, a retail technology solutions provider, said global store-innovation trends are showing how retailers are responding to consumers’ emerging needs and demands.

    “The global shift in consumer behavior puts pressure on retailers around the world to rethink their customers’ journey and experience in their online and offline stores,” said Baird. “In response to this, brands are embracing digital and behavioral innovations to deepen customer relationships, provide in-store services, use stores as fulfillment centers, harness rich customer data, host in-store events, and offer store-only exclusives.”

    With retail sales forecast to almost double in Southeast Asia to US$1.38 trillion in 2025 from $720 billion last year, the importance of connecting digital — where consumer shopping begins — to the retail store will only increase in the Philippines. To prepare for this growth, retailers are investing in in-store innovations and technologies to ensure each store offers optimal customer service and the right inventory to meet the personalized tastes and needs of every shopper.

    “Filipino retailers need to increasingly merge their brick-and-mortar and digital touchpoints to ensure the most seamless experience for the consumer and the most productive and profitable use of inventory across their network,” added Zaki Hassan, regional VP for Asia Pacific at Aptos.

    Aptos works with more than 1000 retail brands across 65 countries.