LONDON — Hang Lung Properties, the developer of Shanghai’s top luxury retail mall Plaza 66, is seeking to strengthen its leading position by partnering with Shanghai Join Buy Group to work on what is now known as the No. 1038 West Nanjing Road commercial project.
Operating under a 20-year lease, the project, a redevelopment of the former Westgate Mall, which used to host Japan’s Isetan department store, will add around 96,000 square meters, or 1.03 million square feet, to Hang Lung’s portfolio on West Nanjing Road, representing a 44 percent increase in total gross floor area.
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Positioned as a community hub where global trendsetting brands and new generations of consumers who favor experiential spaces can connect, Hang Lung said the redevelopment project, which is one block away from Plaza 66, will be transformed into “a dynamic mixed-use complex featuring integrated retail, hospitality and office spaces.”
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West Nanjing Road has historically been the heart of luxury retail in Shanghai over the past two decades. Plaza 66 is home to some of the biggest and most profitable luxury flagships for brands like Louis Vuitton, Dior, Cartier, Chanel, Hermès and Bulgari.
Chanel reopened its landmark store at Plaza 66 after an 18-month renovation last month. The boutique, which is about 32,000 square feet, is almost twice the size of its previous space.
As a result of accommodating these flagship expansions, however, smaller players are being pushed to less desirable locations in Plaza 66, which — to some extent — benefits new competitors nearby.
A few hundred meters away, fellow Hong Kong-based developer Swire Properties has been expanding steadily on East Nanjing Road with HKRI Taikoo Hui, where Vuitton’s landmark flagship The Louis is docked. Chanel also moved its China headquarters from Plaza 66 to HKRI Taikoo Hui in 2019.
Then there is the ongoing Shikumen regeneration project, Zhangyuan, also managed by Swire Properties, next to HKRI Taikoo Hui.
It offers stand-alone historical buildings for one-of-a-kind retail experiences, and has drawn the attention of brands like Dior, Celine and Loro Piana. In the future, Zhangyuan will also become a key transportation hub as three different metro lines will interchange here.
In the face of competition, Hang Lung in September launched the Hang Lung V.3 strategy, which emphasizes capital-efficient reinvestment and asset optimization to amplify its leading position in core cities.
In Shanghai, Plaza 66 has been working on a low-rise, stand-alone pavilion extension project, which is set to add 13 percent more retail space upon completion in the second half of 2026.
The group believes that the No. 1038 West Nanjing Road commercial project will “significantly enhance the scale and synergy of Hang Lung’s Shanghai property portfolio” and strengthen West Nanjing Road’s position as a premier lifestyle destination.