Hysan Development, the largest landlord in Hong Kong’s Causeway Bay, is reaping the benefits of cashed-up Mainland Chinese tourists.
Revenue from retail properties rose 8 percent to HKD700m (USD89.9m) last year because of the booming retail market. The firm has strengthened marketing activities targeting mainlanders, which helped Chinese tourist spending at upmarket The Lee Gardens and Lee Gardens Two rise more than 60 percent compared with 2009. Retail rents renewed last year increased more than 20 percent.
Its new development Hysan Place, under construction at Hennessy Road, has leased 25 percent of its retail space. CEO Gerry Yim Lui-fai said about another 20 percent was under advanced talks. The project will increase the retail portfolio by 50 percent in terms of gross floor area when completed in the second quarter of next year.