What retail slowdown? India’s ‘Diamond King’ Nirav Modi to launch flagship shop on Canton Road
Billionaire jewellery retailer takes advantage of 20pc decline in rent to unveil Canton Road location in prime tourist hub
Indian luxury jewellery brand Nirav Modi is set to unveil a 3,000 square foot flagship store in 1881 Heritage, a premier shopping arcade at the heart of Tsim Sha Tsui owned by Cheung Kong Property, following a discount on rent of more than 20 per cent from the peak of the market.
Nirav Modi, billionaire founder of the Indian diamond house, also known as India’s “Diamond King”, told the South China Morning Post on Tuesday that falling prime retail rents in Hong Kong had offered an attractive entry point for his burgeoning business in a bid to gain a foothold in greater China.
“We are lucky with this, the rent today is more advantageous than two years ago,” said Modi, noting that the shopping space on Canton Road will be home to his largest jewellery boutique in Asia.
With a lingering economic and tourism downturn, retail sales have seen an 18 month-long decline, with August figures down 10.5 per cent year on year to HK$33.9 billion.
Landlords of high street shops, even those at the most favoured tourist destination along Canton Road, are forced to offer discounts to lure retailers.
Real estate consultant JLL predicted retail rents could tumble by 10 to 15 per cent this year following a 22 per cent slide in 2015. In the first half of this year rents have already declined 10 per cent.
