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.

  • Retail rents in Causeway Bay are the world’s most expensive

    Retail rents in Causeway Bay are the world’s most expensive

    Causeway Bay in Hong Kong is now home to the world’s most expensive retail space. According to the annual Cushman & Wakefield survey of high-street retail rents, Causeway Bay has overtaken New York’s Fifth Avenue for the top spot, with rents of US$2671 per sqft per year, or €24,606 per sqm per year.

    The calculations were completed during the second quarter of this year.

    What makes Causeway Bay’s performance on the list even more remarkable is that it was achieved as the retail rent market bottomed out after some three years of pressure from falling retail sales in the city. While that decline has turned around into positive growth over the past year, most property industry sources have said retail rents have not yet begun to climb again.

    Third place on the list of the world’s most expensive retail space – and the most expensive strip in Europe – is London’s New Bond Street.

    Of the Asia-Pacific locations, Japan’s Ginza takes sixth place this year, Sydney’s Pitt Street Mall seventh and Seoul’s Myeongdong district eighth. Those places are the same as last year. The only other change in the top 10 was Avenue des Champs Elysees in Paris overtaking Milan’s Via Montenapoleone into fourth place.

    The annual Main Streets Across The World report, celebrating its 30th anniversary, tracks 446 of the top retail streets around the globe and ranks the most expensive in 65 countries by prime rental value using Cushman & Wakefield’s proprietary data.

     

  • Big C to open in Malaysia

    Big C to open in Malaysia

    Thai Hypermarket Big C appears to be preparing to enter Malaysia. According to several websites, Fraser and Neave, a subsidiary of billionaire Charoen Sirivadhanabhakdi’s TCC Group, is in the process of completing local regulatory requirements through Ministry of International Trade and Industry to prepare for the launch of Big C Malaysia.

    The target opening date has not been confirmed.

    However, the first Big C Malaysia Supercentre is expected to be located in Kedah in northwest Malaysia, near the Thai border.

    Big C currently operates in Thailand, Vietnam and Laos.

    Many Malaysians reportedly cross the border into Thailand to shop at the Big C hypermarket in Hat Yai, in Thailand’s south, giving the company confidence its offer would be popular among residents of its neighbouring country.

  • When robot take over Hotel management

    When robot take over Hotel management

    An automated Alibaba hotel is set to open in Hangzhou. The move showcases the e-commerce giant’s technological capacity and serves to diversify its scope of business – with a view to demonstrating and selling its data-driven innovations. The company has claimed the hotel will be more efficient than manned properties within a comparable price range.

    The Alibaba hotel, which has already accepted bookings, features robotics, facial recognition, smart speakers, voice-activated lighting and room service, and automated alerts for cleaning. Hotel guests will be able to purchase any item featured in the rooms on Alibaba’s website.

    The hotel’s features are well in advance of similar voice-command technologies recently offered to the hospitality industry by Chinese search engine Baidu, although a similar hotel was launched by Shenzhen firm Smart LYZ in Chengdu earlier this year.

    A statement from the company read: “The solutions deployed at Alibaba’s Future Hotel can be used to streamline the operation of [China’s] hospitality sector while improving the experience of guests.”

  • Bangkok’s IconSiam launches tonight

    Bangkok’s IconSiam launches tonight

    Six years in design and construction, Bangkok’s US$1.6 billion IconSiam development will finally be officially launched tonight before opening its doors to the public tomorrow morning. With 500 stores, more than 100 restaurants and 14 cinema screens, a luxury apartment tower and a Mandarin Oriental hotel, the ambitious development is probably the most significant addition to Asia’s retail landscape in decades.

    Tonight, 10,000 businesspeople, retailers, media and guests have been invited to an opening ceremony which kicks off a weekend of festivities costing US$30 million. A fleet of 1500 drones organised by Intel will take to the sky above the Chao Phraya River and a “famous US singer” whose identity is being kept a closely guarded secret, will perform on stage somewhere along the 400-metre riverfront promenade of the building.

    Tickets to the invitation-only event, which also features a raft of Asian entertainers, fireworks, light and water shows, have been trading online for 10,000 THB (US$300), despite never being sold in the first place.

    Tomorrow, thousands of Thais are expected to visit the 750,000sqm venue, with stores offering rewards for early customers – like H&M issuing a 20,000 THB voucher to its first – and Apple is expected to draw long queues for its first official retail outlet in Thailand.

    About 80 per cent of the stores at IconSiam will be open for business tomorrow, the balance opening in ensuing weeks as fitouts are completed and approved by offshore head offices. But the project is still not complete. Several stories above the retail and dining area remain under construction, scheduled to open in July. They will house a world-class 6500sqm River Museum, a 3000-seat concert hall and other community facilities.

    Defining IconSiam is not easy.

    “It’s not a mall. It’s not a mixed use project,” IconSiam MD Supoj Chaiwatsirikul said last night. “It’s a destination.”

    The story of how IconSiam investors acquired the 8.8 hectare riverfront site gives an insight into how the project evolved into much more than a shopping centre. The owners of the land had been approached many times over the years, including by cashed up foreign developers. But they wouldn’t sell – until Siam Piwat CEO Chadatip Chutrakul talked to them, promising to create something that could showcase Thai culture and history to the world and be something all Thais could be proud of.

    Since then, IconSiam’s operational team have worked with Thais literally the length and breadth of the country to involve them in the project. Artworks and sculptures have been selected from 100 artists, mostly Thai, to appear throughout the complex, a 1.6 hectare space called SookSiam (“a city of Thai happiness”) will feature products and cultural heritage of the nation’s four regions, showcasing their handicrafts, performing arts, food, beverages “and local wisdom” in a single destination promised as “immersive, emotional and entertaining”.

    “IconSiam inaugurates a globally innovative model for destination development that moves the project away from being a mall or a mixed-use complex to being an inspiring destination,” explains Chutrakul.

    “It’s a place to regenerate and refresh, to be inspired and seek new ideas, and a place to discover the best of Thailand and the best on offer from around the world.”

    Unprecedented coordination has taken place with city and government authorities to enhance the transport system surrounding the site. A new skytrain track – aptly called the Gold Line – is under construction linking two other rail routes and which ultimately will make it a 20-minute railway journey from downtown Bangkok to the river. The company has built its own wharf in front of the building and worked to enhance a network of 73 river piers making it easier to reach the venue. Some 45,000 Thais travel along the river using public transport every day and they are starting to find that more convenient than ever.

    Work is continuing with landowners and hotel properties along the waterfront to create a public walkway, opening up the riverfront to the people for the first time in centuries.

    SiamPiwat’s Siam Paragon shopping centre which, when neighbouring properties Siam Center and Siam Discovery are added, create the city’s largest single shopping destination, attracts about 250,000 visitors on a typical weekend day. The company expects IconSiam to draw as many as 400,000 once the project is fully operational. About 60 per cent of those will be Thais, the balance tourists, although it is obvious from the size and scale of the luxury duplexes facing the river – bearing brand names including Louis Vuitton, Gucci, Cartier and Hermes – that the ratio will be quite different zone-by-zone: This part of the project is very clearly designed to appeal to the growing legions of Chinese tourists heading to Thailand.

    Another key retail drawcard of IconSiam will be the country’s first Takashimaya department store spread over several levels and including a comprehensive food and grocery offer as well as fashion and accessories.

  • China’s Mosaic Xi’an mall opened door

    China’s Mosaic Xi’an mall opened door

    Pradera Retail Asia has opened Mosaic Xi’an mall in China’s Xi’an city.

    The new 120,000sqm mall is Pradera’s fourth retail asset in China and targets the 20-45 age group with international fashion tenants and entertainment/F&B providers. Already 80 per cent leased, it will hold a one-year promotional program to establish the location in the local market.

    “Mosaic Xi’an creates an innovative shopping experience, so as to satisfy consumers’ booming demand for situating more creative means of entertainment in malls,” said Pradera’s CEO Alison Rehill-Erguven.

    The accents on entertainment are designed to draw customers from the surrounding region who may otherwise shop online.

    “Experiential business is critical for the overall industry,” said Rehill-Erguven. “When more and more shopping centers are transforming into ‘one-stop’ shopping experience centres, we go further to provide the latest advancements in entertainment, F&B and fashion, as well as events, customer service and technology, leading young customer groups on an unforgettable, entertaining journey.

    “Technology has inevitably changed the retail industry; consumers still want to shop in the stores to feel and touch the products … We must not underestimate the power of human interaction and the need for it.”

    Renowned as China’s ancient capital, Xi’an is located in the central Chinese province of Shaanxi. It is surrounded by 14th century city walls, an architectural feature that has been reflected in the design of the new mall.

    Pradera already operates three Mosaic retail properties in Shanghai, Qingdao and Chongqing respectively.

     

  • WeWork signs deal to open office in Busan next year

    WeWork signs deal to open office in Busan next year

    WeWork, a global shared work space provider, said Tuesday it has signed an agreement with Busan to make inroads into the country’s second-largest city next year. The company signed a memorandum of understanding (MOU) with the southeastern port city on Monday with a plan to open its first Busan branch in the Seomyeon area by the first half of next year, it said.

    WeWork said more locations, including in Centum City and Busan Station, will be launched down the road.

    “WeWork will contribute to creating jobs and global business opportunities as well as revitalizing the startup ecosystem in Busan,” Matthew Shampine, General Manager of WeWork Korea, said.

    Established in New York City in 2010, WeWork currently has over 300 offices in 23 countries, including 10 in Seoul. The first Korean WeWork office opened in 2016.

  • Tmall, Swire Properties launch New Retail initiative

    Tmall, Swire Properties launch New Retail initiative

    Alibaba Group’s Tmall and Swire Properties are launching a New Retail initiative creating tailored retail experiences at Swire Properties’ five shopping malls in Mainland China. The partnership will bring benefits to customers in time for Alibaba’s 11.11 Global Shopping Festival on Sunday with Taikoo Li Sanlitun in Beijing the first brick-and-mortar shopping mall in Mainland China to experience this year’s 11.11 “red packet rain” this week.

    Swire Properties will introduce Tmall’s New Retail technologies at five of its developments: Taikoo Li Sanlitun and Indigo in Beijing; HKRI Taikoo Hui in Shanghai; Taikoo Hui in Guangzhou and Sino-Ocean Taikoo Li in Chengdu. The five New Retail initiatives include Tmall Smart Stores, a Tmall Pop-Up Store, Interactive Idol Engagement Photo Booths, Smart Nursery Rooms and a Smart Parking Service.

    Tmall Smart Stores: Shoppers will enjoy a seamless online and offline shopping experience from order to delivery (for participating physical stores). By signing up as members of selected brands, customers can instantly receive details on the latest promotions, and enjoy a return service by simply using their digital devices.

    Tmall Pop-Up Store: Tmall will open an interactive pop-up store featuring cutting-edge technology at Taikoo Li Sanlitun. This nine-day promotion during the Festival will offer shoppers in-depth and enhanced experiences.

    Interactive Idol Engagement Photo Booth: Fans will have a chance to ‘virtually interact with’ and snap a photo with their idol. This is the first-of-its-kind check-in hot spot in Mainland China.

    Smart Nursery Rooms: These offer mothers a relaxing and private space where they can nurse their babies at shopping malls. Vending machines will also offer essential nursing necessities.

    Smart Parking Service: By linking Alipay with their car license plates, drivers can pay parking fees with ease. This service will save drivers 80 per cent of the time usually spent on paying the parking charge and exiting the car park.

    “At Swire Properties, we are always looking for new ways to innovate and integrate the latest technologies into our business, so that we can bring unique experiences to our customers,” said Han Zhi, director, retail at Swire Properties. “Our collaboration with Tmall is a powerful example of digitisation. By harnessing rapidly developing online technologies and big data, our goal is to define the New Retail shopping experience.

    “This year marks the 10th anniversary of Taikoo Li Sanlitun and Alibaba’s 11.11 Global Shopping Festival, both of which have grown in leaps and bounds the past decade. We’re confident that our partnership, which also celebrates this milestone, will set a new benchmark in our respective industries and in the digital space.”

  • Lacasa Hotel opens luxury style hotel in Gwangmyeong

    Lacasa Hotel opens luxury style hotel in Gwangmyeong

    The Lacasa Hotel Gwangmyeong opened its doors on Monday in Gwangmyeong, Gyeonggi. This is the second branch of the boutique hotel brand Lacasa which launched in Sinsa-dong, Gangnam District, southern Seoul in 2011.

    It is located inside the Lacasa Tower between the seventh and 16th floors, and has 191 rooms and three penthouses. The hotel offers a green view from its windows. On the seventh floor is an outdoor garden.

    “Our goal is to make Lacasa Hotel Gwangmyeong into a comprehensive space for rest, culture, shopping and business,” said Choi Yoon-kyung, the vice president of Lacasa Hotel.

    To celebrate the opening, Lacasa will hold a classical music concert for locals on Nov. 17 inside the new venue.

  • Ocean Park to open a luxury Marriott hotel in 2019

    Ocean Park to open a luxury Marriott hotel in 2019

    Ocean Park will soon open its first ever hotel next year with an aim of further boosting the number of visitors. Developed by Lai Sun Group, the hotel has launched its soft opening early this week. According to Peter Lam, chairman of Lai Sun Group, the hotel will undergo further testing and trials in the next two to three months before its grand opening.

    Designed by Aedas, the Hong Kong Ocean Park Marriott Hotel comprises three towers – the Pier Wing, Club Wing and Marina Wing with 471 rooms.

    Three types of Ocean Park-themed rooms (Whiskers Submarine, Bao Bao Paradise, Redd Forest) are featured at the Pier Wing and Marina Wing.

    The rooms are so far said to cost about HK$2,100 on average.

    Targeting families on leisure and business travellers, the hotel includes a pillar-free ballroom spanning 1,200 square metres – one of the largest hotel facilities for events and meetings, the executive M Club, a signature outdoor lagoon pool, four restaurants and bars, and Harnn Heritage Spa.

    “The new destination resort offers a unique getaway experience in Hong Kong and is a perfect example of what Marriott means by travelling brilliantly,” said Mike Fulkerson, vice president, brand and marketing Asia Pacific, Marriott International.

    “There’s adventure on the site of Ocean Park Hong Kong, one of Asia’s leading conservation theme parks, convenient access to Hong Kong’s lesser-explored green spaces and remarkable proximity to the city’s shopping and business districts, broadening our guests’ perspectives and experiences in this globally renowned city.”

    In line with Ocean Park Hong Kong’s core value of environmental protection, the hotel is designed with the initiatives of sustainable future and reducing its environmental footprint.

    The façade features energy-saving components to keep the building cool in summer, as well as rainwater collection and vertical planting systems.

    It will also launch its own green education programme for kids and guests.

    The hotel will also be rolling out “M Passport”, a pilot programme that aims to encourage young visitors to participate in various resort activities with educational and fun themes, such as seashell art, scavenger hunts and dinners.

    Completion of each activity is linked to rewards and treats that’s tracked using a specially designed passport.

    Customers will be able to book exclusive packages for Ocean Park, such as tailor-made educational programmes, breakfast with animal experience with seasonal offers and access to unique animal programmes at the park.

    Leo Kung, chairman of Ocean Park Hong Kong said that the integration of the first hotel into Ocean Park by Marriott International signified the park’s transformation into a resort destination and reinforced its position as a leading “edutainment” attraction in Hong Kong.

    “From planning the stay, savouring magnificent hospitality at the hotel to enjoying delightful entertainment and animal encounters at the park, guests can expect a seamless journey filled with the thrill of discovery. The resort will bring unique experiences for the community and our next generation of visitors,”Kung concluded

  • High occupancy pays off for CapitaLand China malls

    High occupancy pays off for CapitaLand China malls

    High occupancy rates of the CapitaLand China malls portfolio helped deliver a 10.5 per cent increase in distributable income in the three months to September. CapitaLand Retail China Trust Management Limited (CRCTML), the manager of CapitaLand Retail China Trust (CRCT), says income reached S$23.6 million this year, compared with $21.4 million the same quarter last year.

    CRCTML CEO Tan Tze Wooi said China’s retail sales rose 9.3 per cent year on year during the first nine months of this year to RMB 27.4 trillion (US$3.93 trillion), while urban disposable income and expenditure per capita grew 7.9 per cent and 6.5 per cent respectively.

    “China is now growing from a larger base and its long-term fundamentals remain strong,” he said. “With our quality portfolio of malls offering holistic lifestyle experiences, CRCT will stand to benefit from China’s improving household income and rising consumer aspirations.”

    During the latest quarter, CRCT achieved a 2.2 per cent increase in net property income to $36.7 million, driven by broad-based rental growth and effective cost management.

    Wooi said the trust’s portfolio achieved an occupancy rate of 97.7 per cent at the end of September and rental reversion was “a robust 12.1 per cent”.

    “Our active asset management strategy with a tailored approach for each mall is progressing well. Rock Square registered a strong positive rental reversion above 20 per cent for the third consecutive quarter by bringing in 25 prominent international and domestic brands, many of which are new-to-market in Haizhu District.

    “To differentiate CapitaMall Qibao’s offerings, we increased its exposure to the resilient learning and education sector by more than three times over the last five years. We also expanded the rooftop playground to host more interactive activities that are popular with children, further enhancing CapitaMall Qibao’s attractiveness to young families.”

    CRCT is the first China shopping mall Real Estate Investment Trust (Reit) in Singapore, with a portfolio of 11 shopping malls: CapitaMall Xizhimen, CapitaMall Wangjing, CapitaMall Grand Canyon, CapitaMall Shuangjing in Beijing; Rock Square in Guangzhou; CapitaMall Xinnan in Chengdu, Sichuan Province; CapitaMall Qibao in Shanghai; CapitaMall Minzhongleyuan in Wuhan, Hubei Province; CapitaMall Erqi in Zhengzhou, Henan Province; CapitaMall Saihan in Hohhot, Inner Mongolia; and CapitaMall Wuhu in Wuhu, Anhui Province.

  • Golden Mile Complex launches en bloc tender

    Golden Mile Complex launches en bloc tender

    Singapore’s Golden Mile Complex has been put up for sale by tender. The landmark property is being sold through sole marketing agent Edmund Tie & Company. It has a land area of approximately 1.3ha and is zoned for commercial use.

    The complex is considered an icon of Singaporean urbanism with its signature step-terraced building design created by DP Architects, but it has fallen into disrepair in recent years.

    There is a fascinating feature story and video about the complex here on Channel News Asia.

    Senior director of investment advisory Swee Shou Fern said Golden Mile Complex is a national icon that has shaped the visual character of our built landscape.

    “We are proud to present this rare opportunity for adaptive reuse. Its distinctive architecture and worldwide iconic status will offer tremendous potential to transform the property into an exciting work-live-play destination in this growth area. The new Golden Mile Complex will be an essential part of the rejuvenation of the Beach Road corridor and we are working closely with DP Architects and URA on the conservation of the building and further ways to enhance its potential.

    “This unique adaptive reuse opportunity provides the developer with the chance of incorporating a new vision into this iconic development. Many exciting development concepts may be considered for the Property. The collective sale of a large-scale conserved building in Singapore is unprecedented and we will be conducting a longer tender process to allow interested parties to carry out a detailed study.”

    Outline Application has been submitted to retain the existing 16-storey building and addition of a new block next to the building, subject to authorities’ approval. The Golden Mile Complex is under conservation study and discussions to facilitate conservation are open.

    The reserve price for the property is SGD800 million (US$577 million). The tender exercise will close on Wednesday, January 30.

  • Malaysia to reach 700 malls by end of the year

    Malaysia to reach 700 malls by end of the year

    Malaysia can expect to have close to 700 shopping malls trading by the end of next year, according to Malaysia Retail Chain Association (MRCA) president Datuk Seri Garry Chua. The malls will represent a net lettable area of 170 million sqft in total, potentially higher than current market demand.

    In an report, Chua said: “Currently we have about 560 Malaysian malls operating nationwide with total net lettable area of about 135 million sqft. The occupancy for majority of the malls in Klang Valley is between 85 and 87 per cent and that is considered okay if compared with neighbouring countries like Singapore.

    “One way to fill the malls, both new and existing, is tourism. The government has to do a lot more in getting tourists from around the world to come here, especially from China.

    “Chinese tourist spend about US$260 billion globally. They are the biggest spenders.”

    Chua added that tourism is likely to be the largest contributor of GDP worldwide by the 2030s. Its impact on Malaysian retail could contribute to industry growth from the current 10 per cent of GDP to 15 per cent within the next five years.

    The MRCA is estimating an average growth of 6.1 per cent during the third quarter of this year compared to the same time last year.

    “There is huge potential in the local retail industry, despite concerns of a glut in retail space,” said Chua.

    “For future retail, it will have to encompass a lot of digital and concept stores. The malls must be interactive. It must have things like artificial intelligence where you have robots moving around and interacting with people.

    “There should be new dynamics in shopping. Mall owners must keep abreast with latest trends. Pricing and design must be right, especially for fashion brands.

    “Malls are also adding more and more food and beverage (F&B) outlets. Previously, tenant mix comprised 20 per cent of F&B but today, it is 30 per cent,” he said.

  • Calm water for Singapore’s CapitaLand Mall Trust quarter

    Calm water for Singapore’s CapitaLand Mall Trust quarter

    CapitaLand Mall Trust Management (CMTML), the manager of CapitaLand Mall Trust (CMT), says CMT has achieved a distributable income of S$103.5 million (US$75 million) for the quarter to September 30. That marks an increase of 4.9 per cent over the $98.7 million for the same period last year.

    Year to date, distributable income was $302.5 million, an increase of 3.3 per cent.

    CMTML CEO Tony Tan says the portfolio continued to deliver stable returns during the quarter, despite uncertain market conditions. Occupancy was 98.5 per cent, “well above the market occupancy level of 92.7 per cent”, he said.

    Asset enhancement initiatives to uplift the customer experience at Tampines Mall and Westgate are on track to complete in the fourth quarter of this year.

    During the third quarter, CMT’s gross revenue and net property income rose by 0.7 per cent and 1.1 per cent respectively year-on-year. Gross revenue was higher from Junction 8, IMM Building, Plaza Singapura, Bedok Mall and Tampines Mall, partially offset by lower gross revenue from Sembawang Shopping Centre, which was sold in June, and lower occupancy and rental rates contracted on new and renewed leases from JCube and Bukit Panjang Plaza.

  • Sunway Malls wins best in Asia award

    Sunway Malls wins best in Asia award

    Sunway Malls has been recognised as one of Malaysia’s best companies to work for in Asia. HR Asia, Asia’s most authoritative publication for senior HR professionals – created the HR Asia Best Companies to Work for in Asia platform, where best practices and inner workings of companies are investigated to understand what distinguishes them from the rest. The Awards covered 12 markets across the region, and culminated with an award ceremony recently to celebrate the winners.

    Sunway Malls’ vision is “to create experiences that enrich lives” and this vision is extended to our external stakeholders and our employees. Sunway has 4 core values as the guiding factors to our vision; Integrity, Humility, Excellence and Togetherness. Through constant innovation and brain storms, the company take into account the employees’ needs and aim to provide to our best of ability.

    Their first mall, Sunway Pyramid is 21 this year. Sunway Carnival, opened in 2007, is undergoing expansion, Sunway Giza is our friendly community mall opened in 2009 whilst their newer malls are Sunway Putra Mall and Sunway Velocity Mall. To date, Sunway has amassed 54 renowned international and national awards.

  • L Catterton makes exit from China mall operator Sasseur

    L Catterton makes exit from China mall operator Sasseur

    International private equity firm L Catterton has substantially divested from Chinese mall operator Sasseur Cayman Holding. The firm has reduced its shareholding from 58.86 per cent to just 1.36 per cent, as part of ongoing efforts to optimise its portfolio. Sasseur Cayman is the sponsor of listed Sasseur Reit.

    L Catterton Asia chairman Ravi Thakran said: “We continue to strongly believe in the long-term growth prospects of Sasseur and the opportunities it offers to investors in terms of exposure to China’s fast-growing outlet mall industry. We will continue to support the company’s growth initiatives as a Sasseur shareholder.”

    In a separate statement, Sasseur said that growth prospects for China’s outlet sector remain solid – projected to expand at approximately 25 per cent annually for the next five years – with the fastest sales growth among the retail segments in China, even outpacing that of e-commerce.