Hysan retail tenant sales increased by 4%

Hysan (014) announced its first quarter operating figures at the annual general meeting yesterday. Among them, retail tenant sales rose 4% year-on-year, outperforming the market. Chairman Li Yunlian said that after the opening of the third phase of the Lee Garden, the company will focus on building the community concept of the Lee Park and extending the stay of customers in the district. Although the sales of luxury goods have been relatively slow, the company has not seen the need for rent reduction for luxury tenants.

No luxury tenants have to reduce rent

Lv Ganwei, Chief Operating Officer, said that the number of people in the May Day Golden Week in the Lee Park increased by double digits. It was observed that visitors who came to Hong Kong by high-speed rail began to search for attractions outside Kowloon, and they believed that the Lee Park was attractive to mainland tourists. However, due to the decline of the RMB exchange rate and the friction between China and the United States, and the change in consumption patterns, leisure consumption and catering sales are better than luxury goods. Lv also said that there is no need for luxury tenants to reduce rents. Although the market conditions are uncertain, they will now sell well with tenants. “Do your own retail first.” It is not necessary to discuss rents too quickly. I believe that visitors will come to Hong Kong in the second half of the year. There is continued growth, “I will be too worried.”

In the office business, Li Yunlian said that although the demand was reduced, there was less supply in the district, so supply and demand remained healthy. Lv Ganwei said that in the past, office rents have risen sharply. It is normal for the slowdown to rise this year, but it is expected to increase. The occupancy rate of office properties in the first quarter of this year reached 98%.

There are small shareholders who are concerned about the reconstruction of the Leighton Center. Lv Ganwei said that there are always opportunities to rebuild, but in design, interaction with the government, etc. should be thorough.