Xin Lang Cai Jing·2025-12-12 09:01Core Insights - Isetan Department Store will exit Shanghai Meilong Town Plaza in June 2024, raising concerns about the future of this iconic retail space in Shanghai [1] - Hang Lung Properties has signed an agreement with Shanghai Jiubai Group to operate the landmark commercial project at 1038 Nanjing West Road for a 20-year lease [1] - The project will expand Hang Lung's presence in the Nanjing West Road area by approximately 96,000 square meters, representing a 44% increase in total building area [2] Company Developments - The Nanjing West Road 1038 project will be transformed into a comprehensive commercial landmark, featuring retail, hotel, and office spaces, with a super five-star hotel planned as a new landmark in the area [4] - Hang Lung Properties aims to create a complete ecosystem in the Nanjing West Road area, with both the Shanghai Hang Lung Plaza and the Nanjing West Road 1038 project catering to different consumer needs [5] - The total investment for the renovation of the Nanjing West Road 1038 project is estimated at 2.2 billion yuan, focusing on facade updates, interior renovations, and structural reinforcements [6] Industry Context - The Jing'an District, where the Nanjing West Road is located, is positioning itself as a core area for international consumption, with significant retail growth observed [5] - The retail sales growth in Jing'an District exceeded 12% from January to October this year, with the Nanjing West Road area contributing significantly to this increase [5] - The district aims to establish a "trillion-yuan business circle" by the end of the 14th Five-Year Plan period (by 2025), with ongoing developments enhancing the commercial landscape [5]