IFC Mall Leads Sun Hung Kai Shanghai Retail Real Estate Growth

Hong Kong real estate developer Sun Hung Kai (SHK) is rapidly establishing itself as one of China’s leading mall developers thanks to the success of its IFC mall project in Shanghai. According a recent story in Hong Kong’s Standard, IFC mall generated nearly HK$400 million in rent for SHK during 2010, and with the opening more than 100,000 additional square metres of retail space in the company’s iAPM project on Shanxi Lu and Huaihai Lu in Shanghai during 2012 the company expects to see a rapid increase in revenue from its China retail projects.

The Standard story points out,

Primary Shanghai project ifc mall, which opened in April 2010, generated nearly HK$400 million in rents last year.

The mall, located in Pudong, has a gross floor area of 1 million square feet. It recorded total sales turnover of around HK$5 billion last year after drawing about 30 million visitors.

“We plan to open up the second phase during the third quarter of next year, which will add another 100,000 sq ft to mall space,” Fung said.

SHKP currently has 38 million square feet of prime retail space spread across Shanghai, including 6 million sq ft added this year.

The developer aims to expand by another 5 million sq ft next year, followed by 1 million sq ft in 2013 and 8 million sq ft the year after.

As China’s shoppers don’t seem to get tired of buying things very quickly, mall developers such as SHK should enjoy a nice ride for the foreseeable future.