Hongkong Land plans $1 billion luxury retail destinations in financial hub

Hongkong Land announced a more than $1 billion, three-year investment in ultra-luxury retail in the heart of the city’s financial district on Wednesday. The commercial property developer, which is 53.3% owned by Jardine Matheson, said it planned to invest $400 million, with $600 million coming from tenants, on 10 two-to-eight-story Maison destinations within existing developments.

Located in Hong Kong’s Central business district, strategic tenants of the developments include luxury names such as Sotheby’s auction house, Cartier, Tiffany & Co and Louis Vuitton, whom Hongkong Land said had a “very strong intention” to expand their content and customer experience.

The expansion plan comes against a backdrop of overall sliding retail and office markets in Hong Kong, where vacancy rates are at record high levels.

But Hongkong Land said its “Very Important Customer” group has continued to spend more in 2023 and 2024, an average of HK$1 million ($128,080) each last year. VIC contributed around 80% of the company’s luxury retail sales in Hong Kong.

Source: CNBC