New World Development: K11 MUSEA will update over 30% of its retail space, with over 60 brands making their debut. Shenzhen's K11 Art Mall will launch 300 units this season

New World Development (00017.HK) stated that its K11 MUSEA is undergoing a brand upgrade plan, updating over 30% of its retail space, with more than 60 brands making their debut. The group expects that after completing the brand upgrade this year, the rental income from the relevant retail spaces will see a double-digit increase compared to last year.

The group revealed that the occupancy rate of K11 MUSEA has consistently maintained a high level of 98%. During this year's Spring Festival Golden Week, in addition to recording a new high in foot traffic, tourist spending also increased by approximately 60% year-on-year, making February the month with the highest tourist spending in over two years, with a year-on-year growth rate of 80%.

As for its mainland business, the group's first large-scale integrated urban development project, New World 188, in Shenzhen was unveiled last month. The project has a total construction area of approximately 9.7 million square feet, covering over 2.3 million square feet of commercial office space, more than 10 residential properties, and features a unique shopping street, kindergarten, comprehensive health service center, cultural activity center, and a large underground parking lot.

The first phase of the residential project "Zhenyue," consists of 4 residential properties, offering over 1,140 units, focusing on large units with areas ranging from approximately 820 to 1,940 square feet, with the first batch of about 300 units set to be launched this season.

In terms of retail, the mainland K11 performed well during the Spring Festival, with several key projects seeing an average foot traffic increase of 10% compared to the same period last year. Notably, the sales performance in the apparel and 3C digital retail categories was impressive, growing by 28% and 25% year-on-year, respectively. Additionally, Wuhan K11 is expected to open 13 new stores this season, covering lifestyle, fragrance, and diverse dining businesses