Shanghai’s luxury retail market is set to become increasingly competitive, fuelled by a citywide shift as prime malls embrace experiential concepts to differentiate themselves.
Hong Kong developer Hang Lung Properties on Friday said that it had secured a 20-year lease for the No 1038 West Nanjing Road commercial project – formerly known as Meilong Town – in partnership with Shanghai Join Buy Group.
The project would be transformed into a mixed-use complex integrating retail, hospitality and office space, helping drive recurring revenue and increase the portfolio’s overall asset value, the developer said. Hang Lung said the move aligned with its strategy of prioritising capital-efficient reinvestment and asset optimisation to strengthen its position in core cities while bolstering Shanghai’s standing as a global retail destination.
James Macdonald, head of research for China at Savills, said Hang Lung would have control over another core asset situated directly alongside Plaza 66, in one of Shanghai’s most competitive luxury retail corridors.
“It is less about expansion and more about deepening control on an already prime patch – using Plaza 66 as a pure luxury flagship, while positioning the new project to introduce a broader mix of lifestyle, food and beverage and experiential concepts around it,” said Macdonald.
