Hongkong Land Holdings, in collaboration with retail tenants including Hermes and Louis Vuitton, is set to invest $1 billion in the renovation of the prestigious Landmark shopping mall in Hong Kong.
The modernization plan for Landmark, Hongkong Land’s flagship retail property in Central Hong Kong, involves creating multi-story mansion-style stores for 10 tenants, doubling their total floor space. The revamped mall will also feature new restaurants.
This renovation, one of the largest in Landmark’s 44-year history, comes at a challenging time for Hong Kong’s retail sector. Once dubbed a shopping paradise, especially among Chinese tourists, the city now faces increasing competition from destinations like the duty-free island of Hainan and the casino hub of Macau.
It is expected that Cartier, Chanel, Dior, Hermes, Louis Vuitton, Prada, Saint Laurent, Sotheby’s, Tiffany & Co., and Van Cleef & Arpels will collectively spend $600 million on outfitting their new stores. The project will cost Hongkong Land $400 million. The tenants have an average lease commitment of 10 years with Landmark.
The large store area—over 220,000 square feet (20,439 square meters)—will allow brands to offer a wider range of products and more private spaces for their top clients. To make room for this, Hongkong Land will repurpose the lower two floors of a pair of office buildings. The affected office tenants will be relocated within the landlord’s portfolio in the Central district.