Page 70 - #181 May 2023

VOYAGER - ASIA & AUSTRLASIA

Retail on the Road to Recovery

While the Chinese market has taken longer to recover, things have picked up quickly in recent months and
the whole retail real estate sector is quickly returning to what people expect. Over the coming pages, RLI
zones in on the continent to point out a series projects which should have people excited for the future as
the industry rebounds and once again puts mixed-use development schemes front and centre.

lthough 2022 saw most Asia Pacific (APAC) markets, with the of Fukaya-Hanazono Premium Outlets, the 10th Premium Outlet
exception of China, begin to shake off the effects of regional centre in Japan and the first new location in Japan in 10 years, located
ACovid-19 restrictions, as investors look to 2023 they find approximately 45 miles northwest of Tokyo. Building on the success of
themselves confronted with a different, but no less dangerous, set of Gotemba and Rinku Premium Outlets and the other seven properties in
threats: high inflation, rising interest rates, unsustainable levels of public- Japan, Fukaya-Hanazono Premium Outlets will feature 137 brand name
and private-sector debt and an impending global recession. This is the view stores in 296,000sq ft. Of the stores, twenty-four stores have launched
of PWC in their article ‘Emerging Trends in Real Estate Asia Pacific 2023. their first outlet centre concept location worldwide or first in Japan.
The article continues by speaking about retail, saying that transaction The centre also features an impressive food hall design and several new
volumes dropped off in 2022, reflecting diminishing interest among restaurant concepts consisting of Asian, Western and local Japanese
mainstream investors for conventional retail assets, although food and beverage options. Fukaya-Hanazono Premium Outlets is built
nondiscretionary subtypes continue to find favour. Over the long term, to a modern contemporary architectural design which complements the
however, well-performing assets in good locations will continue to be landscape of the local area, including the red-brick and wood finish that
successful and margins should begin to improve once landlords and is local to Fukaya City.
tenants are able to find a successful formula to reimagine assets in ways Developed by China Resources Land and opened last year, MixC
that work to their mutual benefit. Nanjing is a, 83,800sq m, retail-led, mixed-use development located
Meanwhile, CBRE’s ‘2023 Asia Pacific Real Estate Market Outlook’ in the city’s central 700-year-old district known as Sanshan Street and
report highlights that despite rapid change and uncertainty experienced it is situated within the historical urban texture of the ancient city, at
worldwide last year, they retail a relatively positive outlook for the the heart of the site sits an original ‘Yunzhang Gongso’ building. The
Asia Pacific commercial real estate market in 2023. From an economic retail planning for MixC differs from traditional centres and has made
perspective, inflation is expected to ease and interest rates in the region a contribution to the city. To support the cultural centrepiece of the
are set to stabilise in the second half of 2023. In terms of retail, the design, the commercial retail strategy has been altered. In most retail-led
report explains that while 71 per cent of retailers plan to open more schemes, the focal retail units have the strongest visibility to the external
stores, retailers will remain prudent in extending their presence in new street. In the case of MixC Nanjing, this hierarchy has been restructured
markets. Space in prime assets will remain keenly sought after while to place anchor tenants within the internal pedestrian streets to draw
interest in secondary retail will strengthen. visitors through the main courtyard.
Projects Across Asia & Australasia The Splendors Zhangjiagang Shopping Center opened last year
Back in October, Simon and Mitsubishi Estate Simon, a joint venture and is the prime commercial component of the Zhangjiagang Smart
between Mitsubishi Estate Group and Simon, announced the opening City Development by China Jinmao Group. The site is located within

MixC Nanjing, Nanjing, China
Developer: China Resources Land