The plaza that can make money is not only in Shanghai


Hong Lung Group’s property leasing revenue in the mainland rose 30% year-on-year to HK $7.402 billion in 2021, driven by the strong performance of high-end shopping malls in the mainland, according to the announcement of Hang Lung Properties.Among them, the rental income of mainland shopping malls was HK $4.662 billion, up 25% year-on-year.At the results conference, Hang Lung Group chairman John Chan said that the sales volume of Hang Lung Plaza in Shanghai is 2.7 times that of all the group’s Hong Kong shopping malls combined, and the sales volume of Hang Lung Plaza in Shanghai port is expected to surpass that of Hong Kong in 1-2 years.Undoubtedly, Shanghai’s two flagship shopping malls are still the stars in the spotlight.And usually rarely mentioned other cities of the Hang Lung plaza, finally from the “small supporting role” promoted to the “second leading role”.Meanwhile, in 2021, the combined sales of wuxi and Kunming shopping malls will surpass those of Hong Kong, while the newly opened Wuhan Henglong Plaza is expected to surpass Those of Wuxi and Kunming in two years and become the shopping mall with the highest sales outside Shanghai.Jinan Henglong Plaza will launch a three-year asset optimization program in June 2021, which is expected to replicate the success of henglong’s similar program in Shanghai shopping malls.Hang Lung Real Estate, which is gradually breaking the “dependence syndrome” in Shanghai, turned a loss into a profit with rent collection despite the fact that there was no property sales revenue recorded in the year.1. High-end shopping malls have always been the ballast stone for Henglong’s performance.Based on the revenue of mainland shopping malls, it can be seen that the rental income of high-end shopping malls will further increase to 86.01% in 2021, directly promoting the upward performance of the whole company.Specifically, in 2021, revenue growth of all Hang Lung’s mainland high-end malls exceeded double digits year-on-year, and corresponding tenant sales growth ranged from 33% to 89% year-on-year.In terms of regional distribution, high-end shopping malls in Shanghai are the cornerstone of Hang Lung real Estate’s stable performance, while Hang Lung Plaza from Wuhan and Kunming, two consumer boom cities, is a new addition to its performance.2. Wuhan Henglong Plaza: Based on the upgrading of the business circle of the core city, wuhan Henglong Plaza is the most highlighted in the performance release conference of the new talent with high expectations.”The Wuhan project is likely to surpass Wuxi and Kunming and become the best shopping mall outside Shanghai within two years.”Wuhan Henglong Plaza, also a high-end shopping mall, opened in March last year. Less than 10 months later, it brought in 153 million yuan in revenue, nearly 1 billion yuan in tenant sales, and 84% occupancy rate, which exceeded expectations.The success of Henglong’s brand and operation is also the result of the continuous upgrading of Wuguang Business district.Wuhan-guangzhou Business Circle is not only the starting area of modern commerce in Wuhan, but also the main battlefield of high-end consumption in Wuhan.Before 2000, the most eye-catching in wu-guang business circle are the three department stores strung up by the air corridor.In the 21st century, Wuhan Hanshang And Wuzhan Shopping Center opened, and the retail structure of Wuguang business district changed from department stores to shopping centers.In 2007, Wuhan International Plaza targeting high-end consumption was opened;In 2015, a new Sogo Fashion Square was opened for young fashion consumers.In 2020, K11 II And AVENUE 11, which are positioned as “high-end, luxury and fashion”, will open.In 2021, Hang Lung Plaza opens.The project types and positioning of the stage have changed in a variety of ways. The retail format of Wuguang Business circle has evolved from daily shopping and catering to middle and high-end experience, and the consumption level has advanced from popular to high-end.First shop, luxury brands have become the new background of Wuguang business circle.For example, in 2009, 42 international luxury brands represented by Gucci, Ferragamo, MaxMara, Burberry and Cartier jewelry store all entered Wuhan International Plaza.Hang Lung Plaza, which will be completed in 2021, will introduce THE head brands of LVMH and Kering group as its appearance, including THE first stores in Wuhan, such as BALENCIAGA, LOEWE, HUBLOT, POMELLATO, VILEBREQUIN, LONGCHAMP, THE GLARE, etc.FENDI, PIAGET, IWC, VACHERON CONSTANTIN, MONTBLANC and other exclusive stores in Wuhan.The great reform of Wuhan-Guangzhou business district not only brings bustling people, but also enlarges the brand scale of the business district. A large number of luxury goods and first shops are entered for the first time, thus forming the only high-end consumption growth core in Wuhan.It is not difficult to see that Henglong Group is optimistic about the Wuhan project, which is the long-term investment return after fully considering the location value.3. Kunming Henglong Plaza: The mall ranked second in tenant sales outside Shanghai, Kunming Henglong Plaza opened in August 2019.As the largest single shopping center in downtown Kunming, it has opened nearly 300 brands, of which nearly 1/3 are the first store in Yunnan, becoming the real “first store harvester”.Taking Shanghai Port Henglong Plaza as the coordinate, Kunming Henglong Plaza is a gathering place of big-brand luxury goods in Kunming, with good performance in 2021.”Kunming Plaza’s tenant sales are actually the second highest in our portfolio outside Shanghai, behind Wuxi Plaza, and its market leadership is unassailable.”In the field of high-end retail, Kunming Henglong Plaza currently has no strong local rival. Its potential rival, high-end department store SKP, has already acquired land in Kunming, which is just across the road from Henglong Plaza, but it has not yet started construction.In recent years, the southwest region has been considered as the emerging area for the expansion of luxury shopping malls.Although the luxury consumption climate of Kunming is far from that of Chengdu, as a hot tourist city in China, the consumption heat of urban shopping centers has been rising with the increase of passenger flow.In this context, the performance of Kunming Henglong Plaza continues to improve, is also a high probability event.Dalian Henglong Plaza: The trial operation of Dalian Henglong Plaza began on December 18, 2015. With a total construction area of nearly 230,000 square meters and a total investment of about 7 billion yuan, it is the largest and most distinctive giant commercial complex in Northeast China and the largest Henglong Plaza in mainland China.However, according to hang Lung Real Estate’s 2016 half-year performance report, in the first half year of trial operation, the rental rate of Dalian Hang Lung Plaza was 62%, with rental income of 43 million yuan.Although the occupancy rate of the project climbed steadily from 2017 to 2020, the corresponding occupancy rate was 71%, 79%, 82% and 77% respectively.But the real surprise came when it began to truly transform itself into a high-end mall filled with luxury brands.Since 2020, international luxury brands have been stationed in Dalian Henglong Plaza,Including JimmyChoo, Balenciaga, bomanlando, BOTTEGA VENETA, BURBERRY, bulgari, Celine, CHAUMET, DIOR, EMPORIO ARMANI, Fendi, Fred, Gucci, LouisVuitton, Moncler, Montblanc, TIFFANY&CO, Tory Burch.In terms of performance, Dalian Henglong Plaza saw its revenue increase by 45% in the second half of 2021 compared with the first half, and its occupancy rate reached 87%.Through the three “praised” projects in Wuhan, Kunming and Dalian, we can see the real combat of Henglong to break the dependence of Shanghai, and also see its strategic focus of highly locked high-end shopping malls.High-end shopping malls, by “slow”, “steady” can prosper forever?In fact, the mainland high-end market performance of the firm, reflecting their excellent anti – fragile force.Data show that the passenger flow growth rate of high-end shopping malls in 2021 is significantly higher than that of other shopping malls in 2020 and 2019, which means that high-end shopping malls are least affected by the epidemic, and recover fastest in the post-epidemic era with stronger resilience.Based on this, shrinking the management radius, returning to the core product line, expanding the core city, is the key to maintain stable performance of Henglong in the future.On the one hand, outside first-tier cities and strong second-tier cities, the high-end market has limited capacity.Luxury brands are struggling to open many stores in these cities, so high-end stores have to get ahead.First-movers can thus build a solid defensive advantage, while latecomers face cutthroat competition.Take the projects of Hang Long Plaza in two new first-tier cities as an example. Both Tianjin Hang Long Plaza and Wuxi Hang Long Plaza are located in the core advantageous locations of the city, and their initial positioning is high. However, Due to the timing delay, Tianjin Hang Long Plaza missed the opportunity of luxury brand layout in Tianjin, and thus missed the opportunity to become the top shopping mall in Tianjin.Wuxi Henglong Plaza has seized the opportunity of the local market, completed the entry of high-end brands at the beginning of its opening, constantly adjusted and supplemented, and appropriately added multiple formats and online celebrity brands, which can not only occupy high-end consumer territory but also attract more consumer groups at different levels.The three henglong Plazas that were singled out for “praise” this year were either the only high-end luxury shopping malls in the city or played an important role in upgrading the municipal business district.On the other hand, there have been many new changes in high-end shopping malls in recent years.The first is the acceleration of the acquisition of “potential shares” cities by mainland players such as Mixc, SKP and Wushang.The tentacle of Mientiane City has extended to shantou, Fuzhou, Nanchang, Wuhan, Haikou, Kunming and other cities, while SKP entered the complex in the form of signing contracts with main stores, light asset export management, and started the “southern campaign” and “northern war”.The martial businessmen who occupy Wuhan for many years also decided to go out and have a look. They spent 3.3 billion to buy the commercial projects under construction in Suning Square in Nanchang and build the high-end commercial complex in Nanchang.Followed by Swire, K11 and other Hong Kong enterprises to expand in Shanghai, heavy warehouse greater Bay Area.Four years after the opening of Shanghai Xingye Taikoo Hui, Shanghai’s first Taikoo Li — Foreshore Taikoo Li was opened in September 2021, and the second K11 began construction in early August 2021, or landed in the form of K11 MUSEA.To this, Lu Wenxi of analyst of Shanghai central plains estate market thinks, adjacent place opens two shopping malls with the same brand, can get rid of the limitation of onemonary space already, can have each different on format again, form difference is complementary.Finally, under the wave of urban renewal, Swire replicated the legend of “Swire Li” in batches through old renovation.The swire Project, which will be hotly discussed in 2021, is more or less labeled “old renovation”.Swire Properties and Shanghai Jing ‘an Land co., Ltd. cooperated to create the old renovation project — Shanghai Zhangyuan Swire Project;Beijing Sanlitun Taigu Li West Area expansion project, transformed from Yaxiu Clothing Building;Xi ‘an Xiaoyan Pagoda Taiguri bid “Chengdu Ocean Taiguri”, the demolition of the former area has entered the accelerated stage in August 2020.It is fair to say that the landscape of high-end malls in Mainland China is very different today than it was a decade ago.Inside the room high-end shopping mall say increase, part of the port enterprise from “jogging” to “run”, as well as the great rise of the bay area, wave of urban renewal, all these show that with the increase of incoming, opportunities, future high-end market will be more and more fierce competition, in the same city, the same business circle a high-end store the dominance will be broken.But even as the world outside changes, Hang Lung maintains a “slow” and “steady” pace, strategically gathering established cities.At the performance conference, when asked whether he would “catch the bottom” and buy more land in the mainland, Chan replied, “We are still waiting and hoping for good news.”So, can this constant approach alone withstand multiple competition?Even in cities outside Shanghai, Hang Lung is confident of becoming a leader in high-end business there, says Mr Loeb.To achieve this, hang Lung may now need to recreate a Shanghai Hang Lung Plaza outside Shanghai as soon as possible.Zhuge Liang – Biao Ma China, more than 20 years of professional, dedicated, focus on the transformation of real estate enterprises in local cities and counties characteristic towns, commercial real estate & industrial real estate projects to provide full nanny menu services:1. Take land consultant, cooperate with international and domestic robots, science and technology universities, smart hospitals, cultural creativity, endowment industry resources, and plan top-level design for featured real estate projects such as featured towns and featured commercial streets;2. Integrate planning and design, cooperate with the National First-class architectural design Institute, and transform commercial real estate such as complex, shopping center, commercial street, professional market and community business for real estate enterprises;Industrial real estate such as business travel, cultural and innovation, scientific and technological innovation, agricultural innovation, health, sports and leisure, old-age education, new economic park development, provide positioning planning, concept planning, architectural design schemes;3. Leasing and sales agent, with more than 20 years of menu service experience in cities and counties of 10 million square meters, attracting investment and sales for industrial real estate and commercial real estate projects such as trade logistics real estate and characteristic commercial street;4. Project diagnosis, providing solutions for local and county projects;5. Full consultant, escort the whole project with more than 20 years of accumulated menu service experience.

Leave a Reply

Your email address will not be published.