Ji'Nan Hang Lung Plaza Suffered From Labor Pains And Several Hundreds Of Thousands Of Shops

Reporters in the mid 2014 report of Hang Lung estate found that except for Ji'nan Hang Lung Plaza, its group's shopping malls all recorded rental income growth.

The rental income of Hang Lung Plaza in Ji'nan dropped by 10%.

Jiao Ke, director of marketing department of Shandong Hang Lung Properties Limited, told reporters in a few days ago that Ji'nan Hang Lung Plaza will "take a moment to clarify its position and absorb the brand that matches the market, which is the most favorable direction for the long-term and sustainable development of the shopping mall".

On the eve of national day, Hang Lung estate was reborn in the mainland. Tianjin's Hang Lung Plaza with a total investment of 6 billion yuan was officially opened. Its 150 thousand square meter floor area is only slightly smaller than that of Ji'nan Hang Lung Plaza.

It is worth noting that the location of Hang Lung Plaza in Tianjin has been reduced and more popular. Although Hang Lung estate has interpreted this as a top luxury brand, it has already settled in its competitors. However, this shows how much the Hang Lung estate is positioned in Ji'nan.

Reporters recently visited the Hang Lung Plaza in Ji'nan, where almost every floor was idle, and only one shop was operating normally at the wing wing corridor of Hang Lung Plaza. The beautiful cartoon masks blocked the doors of tightly closed shops.

This phenomenon is particularly serious in Hang Lung Plaza, which is dominated by high-end brands. Some shops have even been vacant for several months.

According to Hang Lung estate, the rental rate of Hang Lung Plaza in Ji'nan is around 85%.

Ji'nan's Hang Lung Plaza, which opened 3 years ago, has a rental rate of 95%, and at least 10% of the shops have been closed.

Heng Long people concerned told reporters before the reporter that Ji'nan Hang Lung Plaza in the initial investment process, it was difficult and laborious, many brands have no confidence in the second tier city market.

In Ji'nan Hang Lung Plaza, with several high-end brands in Shandong, an international trading company has removed one of its stores.

Referring to the reasons for dismantling, the company concerned told the reporters that the rent was more expensive than that of Hang Lung Plaza, and the public's recognition of the brand was poor. "The monthly rent of the shop that has been withdrawn is more than 40 thousand yuan, and now it has lost hundreds of thousands of yuan."

Some analysts told reporters that the current high-end retail market, due to the impact of corruption, the purchase of luxury gifts to the atmosphere is depressed, but also to a certain extent, affecting the demand for high-end retail products.

Compared with the first tier cities, the broad market of second tier cities has attracted more and more top commercial bodies.

However, in view of the constraints of public consumption ability and consumption concept, the outside world has always been cautious about the prospect of commercial real estate in second tier cities.

The mid 2014 report showed that the performance of Hang Lung Plaza in Ji'nan was the most affected in terms of rental rates, although retail sales rose by 3% despite the increase in vacancy rates.

"The business situation of Ji'nan Heng lung can be described as two days of ice and fire. The hottest food and movie city are the most popular ones. The rest of the floors are not satisfactory except for one level, which is why the passenger flow is huge, but the rental rate is falling."

Investor Hui Xing, who conducted field research on Hang Lung Plaza over two months, wrote.

Hui Xing believes that catering should contribute to the main part of growth.

The contribution rate of food and beverage is lower than that of clothing category. Therefore, there will be a rising turnover in Ji'nan Hang Lung square, but the rental income will remain unchanged.

In 2013, its rental income was HK $367 million. If annual rental volume was between 1 billion 150 million -14.5 billion yuan and 20%-25% rent / sales, it seems that the potential consumption capacity of this lot can not be fully explored.

It's not easy to handle the local market conditions.

Jiao Ke told the reporter,

Hang Lung Plaza coincides with the end of the first tenancy. After the completion of the tenant portfolio optimization process, the rental rate and sales will naturally rebound.

In the meantime, the emergence of a certain vacancy rate is a natural thing. Hang Lung estate will not introduce the tenants and brands that are not consistent with the location and target customers in order to reduce the vacancy rate.

Although in the view of Hang Lung Plaza, such adjustment is normal.

However, if we want to "play" the second tier cities in the mainland, it is probably the key to cope with the local conditions and overcome the problem of "acclimatization".

Following the development of Hang Lung Plaza and Hong Kong Plaza Plaza in Shanghai, Hang Lung estate has entered Shenyang, Ji'nan, Wuxi, Tianjin, Dalian, Kunming and Wuhan markets. Its mainland projects are named after "Hang Lung Plaza". The annual investment in mainland commercial real estate projects is about 6 billion yuan.

It is reported that Dalian Hang Lung Plaza is scheduled to open in the three quarter of next year.

One side is expanding the size of the mainland market, while the other is suffering from labor pains in the second tier cities.

For the performance of Hang Lung Plaza in the mainland project, Chen Qizong, chairman of Hang Lung real estate, admitted that in every city it is the first time to enter, and inevitably there will be many difficulties. It is not easy to grasp the local market conditions, especially we have no experience.

Nevertheless, Chen Qizong still insists on his second tier strategy.

In Chen Qizong's view, the second line city will still be considered in the future, because Heng Long is the target of a large area of land, and the opportunities in the first tier cities are limited.

Faced with the downward trend of the housing market, many housing enterprises choose to get together to pform commercial real estate, which also makes the development of the commercial real estate in the mainland grim, facing the hidden trouble of high altitude rate.

"The vacancy rate of the mainland shopping malls is very high. What are the advantages of these vacant rooms besides raising mice?" Chen Qizong was so blunt at the Boao real estate forum in 2014.

At this year's mid-term performance conference, Chen Qizong admits that the mainland is not a lively market this year.

"In the rest of the year, the mainland economy is looking for a significant improvement.

In fact, the current weakness is likely to extend to the first half of 2015.

Therefore, it may be impractical to expect our mainland business to follow the wind.

This is different from most of our experience in the past 15 years. "

Hang Lung estate wrote in the 2014 interim report.