Lee Garden Three a boost for Hysan
A “steady retail market” and the opening of Lee Garden Three underpinned a solid year for Hysan Development Company.
Turnover rose 9.6 per cent to HK$3.89 billion and recurring underlying profit by 8 per cent to $2.53 billion for the year and the company reported a 98 per cent occupancy rate of its retail properties.
Chairman Irene Yun-Lien Lee said footfall in the company’s malls improved by about 11 per cent. Tenants’ sales grew faster at 16.2 per cent than Hong Kong’s general retail sales growth of 8.8 per cent.
“Lee Garden Three’s completion has added greater impetus to the changes in both sectors of our commercial portfolio,” she said. “We have a comprehensive plan to continue to curate the Lee Gardens community with the support of our neighbourhood stakeholders.”
Lee said the opening of Lee Garden Three provided the group with an opportunity to energise the rest of the portfolio.
Turnover in Hysan’s retail portfolio was on par with last year at HK$1.923 billion (2017: HK$1.925 billion).
“Last year saw a significant improvement in our ‘content’ provision. Initiatives included an enhanced tenant mix, strong tenant and third-party partnerships, unique experiences and events, key branding programs, improved and expanded loyalty programs, and the start of a digital transformation.”
Hysan’s loyalty programs – Club Avenue for VIPs and Lee Gardens Plus for general shoppers – saw “substantial” membership growth last year. Sales attributable to Club Avenue members rose at a double-digit rate.
“We are encouraged by the growth of these and will further invest in the hardware and software of our programs to benefit all members,” said Lee.
However, while last year brought strong results for the company, Lee is cautious about the year ahead.
“Hong Kong’s economic growth slowed considerably in the second half of last year. Waning confidence in both the property and equity markets will be further affected by anticipated headwinds from macro issues this year. These include the structural slowdown in China and the trade war between China and the US.”
She said Hysan has implemented a range of measures to weather the uncertainties and to tackle structural changes in both the retail and office sectors.