Hong Kong Art Mall Up For Grabs
By ANTONIA EBNER
Entrance to K11 Art Mall. Photo by Miranda Ruiter. Courtesy Wikimedia Commons.
According to reports, the K11 Art Mall in Hong Kong, which is owned by the Hong Kong’s property conglomerate New World Development, has received a HKD 9 billion (USD 1.2 billion) offer from CR Longdation, a state-owned Chinese company and a subsidiary of China Resources Holdings Co.
The move has garnered attention due to K11’s recent financial difficulty. Falling property prices in Hong Kong and increased interest rates have prompted the developer to offload “non-core assets from HKD 6 billion (USD 770 million) to HKD 8 billion (USD 1.03 billion)” to regain liquidity, according to Adrian Cheng, CEO of New World Development and founder of K11.
The seven-story shopping mall in Tsim Sha Tsui in Kowloon was developed in 2009 as part of Cheng’s broader K11 brand. According to Art Mall’s website, the brand’s mission is to develop “a sustainable ‘art x commerce’ K11 business model, creating a museum retail concept.” The mall has hosted numerous art exhibitions and installations since it first opened.
Cheng has made considerable efforts to promote Chinese contemporary art, and in an interview with Artsy he said that he was using his platform to support “young generations [that] want to be part of this new cultural identity that represents the new China.” However, the sale of K11 Art Mall signals a strain on New World Development’s strategy, possibly due to the challenging economic environment. It is rumored to be “part of its plan to improve financial health,” according to a Bloomberg report.
While there has been no official confirmation that New World will accept the offer, market analysts are watching the developments closely as the move could mark a significant turning point for Cheng’s business empire and the future of K11’s art-focused retail model.
Antonia Ebner is an editorial intern at ArtAsiaPacific.
