Base rents for second tier malls rose compared to a decline in tier-one retailers.
Bloomberg reports that community shopping centers targeting local customers are better suited to weather a downturn that has battered luxury retailers, according to property consultants Savills Plc, Jones Lang LaSalle Inc. and CBRE Group Inc.
In Hong Kong’s biggest deal involving malls this this year, Gaw Capital Partners led a group including Goldman Sachs Group Inc. in a $2.9 billion purchase of 17 shopping centers located below public housing estates, where residents walk through the malls to get to their homes.
These regional malls are unique to Hong Kong, a densely populated city where space is scarce and apartments are often stacked on top of shopping centers, restaurants and offices.
Here’s more from Bloomberg:
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