Hong Kong’s New World Development said the group plans to invest US$1 billion to open shopping malls in China in the next 5-7 years, banking on strong consumption in the world’s third-largest economy.
The group includes New World Development, New World China, New World Department Store China and NWS Holdings, whose core business is in residential property, retail properties and hotels in greater China.
The group was trying to push a new-concept mall called K11 that combines art and shopping, executive director Adrian Cheng told Reuters an interview yesterday.
‘The K11 concept shopping mall will have exponential growth in terms of rental income after it has been open for three years,’ said Mr Cheng, 30, grandson of chairman and Hong Kong tycoon Cheng Yu-tung, who made his wealth from jewellery and property.
‘We plan to open K11 malls in seven cities in China in the next 5-7 years and our plan is to invest around US$1 billion for the development,’ he added.
Mr Cheng’s comments came after the Hong Kong market closed on yesterday. New World Development’s shares were down 2.55 per cent, lagging the broad Hang Seng index’s 2.05 per cent fall.
Source : Business Times – 23 Mar 2010