Ok, so each Maison is expected to spend 60mil USD of CAPEX to re-fit their stores? While the storefronts of these Maison look opulent and intimidating (to me), I don't think the renovation costs 60mil each. These sums probably include the total fixed/variable rents they will pay over the 10-20years lease, to make the catchy headline figure.
But HKL has to cough out 400mil and that will be cold hard capital. Good use of capital? Or no choice to stay competitive? Will value be created? or trapped?
HK mall to get US$1 billion upgrade with help from Hermes, LVMH
The plan to upgrade Landmark, Hongkong Land’s flagship retail space in Central, will create multi-story maison-style stores for 10 tenants, who will see their total shop space double, according to the landlord. It will include new restaurants.
Cartier, Chanel, Dior, Hermes, Louis Vuitton, Prada, Saint Laurent, Sotheby’s, Tiffany & Co and Van Cleef & Arpels are expected to spend US$600 million collectively on the fit-out of the new stores.
For Hongkong Land, the project will cost US$400 million. The tenants have on average 10-year lease commitments to Landmark.
https://www.businesstimes.com.sg/interna...ermes-lvmh
But HKL has to cough out 400mil and that will be cold hard capital. Good use of capital? Or no choice to stay competitive? Will value be created? or trapped?
HK mall to get US$1 billion upgrade with help from Hermes, LVMH
The plan to upgrade Landmark, Hongkong Land’s flagship retail space in Central, will create multi-story maison-style stores for 10 tenants, who will see their total shop space double, according to the landlord. It will include new restaurants.
Cartier, Chanel, Dior, Hermes, Louis Vuitton, Prada, Saint Laurent, Sotheby’s, Tiffany & Co and Van Cleef & Arpels are expected to spend US$600 million collectively on the fit-out of the new stores.
For Hongkong Land, the project will cost US$400 million. The tenants have on average 10-year lease commitments to Landmark.
https://www.businesstimes.com.sg/interna...ermes-lvmh