Cartier Closes Hong Kong Boutique Amid Luxury Slump and More Asia Real Estate Headlines

Hong Kong is back to work after last week’s holiday, but the city’s real estate market doesn’t seem to be able to catch a break with Tsim Sha Tsui losing  its Cartier shop as retail woes continue.

In a crisis bred as much by outsized ambitions as by current conditions, Kowloon was also the scene of a drama that saw the head of the city’s 40-hectare (98 acre) West Kowloon Cultural District lose his job amid budget overruns. In happier news, Alibaba is buying a 9.9 percent stake in a duty-free retailer as it plans a China JV with the Swiss group.

Cartier Closes Tsim Sha Tsui Boutique Amid Luxury Sales Slump

Cartier, the French luxury jeweller and watch maker, said it’s closing one of seven boutiques in Hong Kong to consolidate its sales network, reflecting the predicament of the city’s luxury retail industry amid a bruising recession and a collapse in tourist arrivals.

The jeweller closed its boutique at CK Asset’s Heritage 1881 shopping centre on Canton Road, Cartier said in a statement. Separately, the retailer opened an outlet at New World Development’s K11 Musea, and put a nearby outlet on Peking Road through renovations. Read more>>

Bleeding Billions, Hong Kong Arts Hub Axes CEO

Last week’s acrimonious shake-up at Hong Kong’s controversial arts hub exposed a bitter row between the management and its governing board, raising new questions about the future of a 22-year-old project grappling with cost overruns and delays.

Duncan Pescod, 61, a former Hong Kong civil servant who became CEO of the West Kowloon Cultural District Authority five years ago, said he was being forced to step down at the end of November, nine months before his HK$5 million-a-year term expires, without being told why. Read more>>

How Evergrande’s Billionaire Founder Skirted Latest Crisis

Hui Ka Yan, the rags to riches billionaire who runs China’s most indebted developer, skirted his latest crisis in much the same way he always has: with help from wealthy friends and a government fearful of financial instability.

Hui’s China Evergrande Group sealed a deal last week with a group of investors that waived their right to force a $13 billion repayment by the property firm, avoiding a potential default that would have sent shock waves across financial markets in China and beyond. Read more>>

Alibaba to Buy 10% Stake in Dufry, Set Up China JV

Alibaba plans to acquire an up to 9.99% stake in Swiss duty free group Dufry, Dufry said on Monday, as it announced a new Chinese joint venture with the tech giant.

“Alibaba Group and Dufry AG (Dufry) have agreed to enter into a collaboration to jointly explore and invest in opportunities in China to develop the travel retail business and to enhance Dufry’s digital transformation,” Dufry said in a statement. Read more>>

Brookfield REIT May Spur India Real Estate Demand

Global investment firm Brookfield’s proposal to launch REIT public issue for raising over Rs 4,000 crore augurs well for the future of India’s office market and will boost investment as well as demand-supply in this segment, according to realty experts.

Institutional as well as retail investors are likely to take positive view on the Brookfield issue, driven by successful listing of the first two Real Estate Investment Trusts (REITs) — Embassy Office Parks and Mindspace Business Parks, they said. Read more>>

Singapore Retail Sales Slump Eases Again in August

The improvement in Singapore’s retail sales continued in August as the economy went through its second full month of reopening after the circuit breaker period, though the month-on-month jump in sales seen in July dissipated.

Compared with the same month a year ago, takings at the till declined 5.7 per cent, better than the 8.5 per cent drop recorded in July, according to data released by the Department of Statistics (SingStat) on Monday (Oct 5). Read more>>

Malaysia’s UEM Group to Merge Development Businesses

UEM Sunrise Bhd, one of the largest property developers in Malaysia, has received a letter from its shareholder proposing a merger with peer Eco World Development Group Bhd, the company said on Monday.

Its major shareholder UEM Group, in a letter on Friday asked for UEM Sunrise and Eco World to “consider the merits of a proposed merger and to commence discussions”. Read more>>

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