Hongkong Land Opens Luxury Mall as Latest Phase in $8B Shanghai Commercial Project

Hongkong Land has opened the second phase of its $8 billion Westbund Central project in Shanghai, advancing what the developer describes as one of the world’s largest mixed-use commercial complexes as it ramps up leasing and tenant rollout along the Xuhui waterfront.

Phase Two shifts the focus of the project towards designer retail and lifestyle concepts, building on an initial stage that emphasised dining, cafes and sports-oriented offerings, the Jardine Matheson-controlled builder said Monday in a release.

New tenants include Japanese fashion label Issey Miyake, multi-brand boutique SND, Leica Store & Gallery for cameras, Swiss chocolatier Laderach and design-focused brands including furniture maker Hay and lighting specialist Paulmann. The newly unveiled stage marks a key milestone for Hongkong Land’s flagship mainland China investment, which is being positioned as a “new downtown” integrating office, retail, residential and cultural uses in a single district. 

“Westbund Central is a fresh and dynamic example of our strategic focus to develop ultra-premium, integrated commercial districts in Asia’s leading gateway cities,” said Hongkong Land CEO Michael T Smith. “As Hongkong Land’s largest single investment to date and our flagship China property, Westbund Central is one of the most significant projects in the company’s portfolio and designed to deliver sustained long-term value.”

2028 Completion

Westbund Central will span more than 1.7 million square metres (18.3 million square feet) of gross floor area upon completion, combining retail space, luxury residences, hotels and arts venues with 650,000 square metres of premium Grade A offices that will house occupiers including Adidas and Lululemon. The phased development is scheduled to run through 2028.

Around 12,000 square metres of retail space has already opened under the second phase, with a further 30,000 square metres scheduled to come online later this year. Future stages will introduce luxury maison flagships as part of a third phase, extending the development’s appeal to high-end international brands, Hongkong Land said.

The retail rollout forms part of a wider plan to house more than 600 retail and lifestyle tenants and 180 food and drink operators across the completed scheme.

“Westbund Central is being shaped as Shanghai’s new downtown and we are incredibly proud to build one of the largest mixed-use properties in the world that redefines modern urban living,” said Westbund Central CEO Stuart Grant.

Mainland Growth

Westbund Central traces its origins to Hongkong Land’s push to expand its mainland China footprint through large-scale mixed-use developments anchored in prime urban districts.

The Xuhui waterfront project has been billed as a “city within a city”. Hongkong Land tapped former Blackstone executive and Jardines veteran Grant to oversee the development last year as part of a broader management reshuffle aimed at bolstering the group’s portfolio leadership.

The leadership overhaul came as Hongkong Land reshaped its business model under its Strategic Vision 2035, which aims to expand the company beyond its traditional landlord role in Hong Kong’s Central and towards a more diversified platform spanning multiple gateway cities.

The strategy includes a pivot to a fund-management style model in which Hongkong Land develops and manages projects alongside capital partners while recycling assets to fund new investments. In February the company launched its maiden fund, a Singapore-focused vehicle seeded with $6.4 billion in prime office assets.