Hysan Development, the biggest landlord in Causeway Bay, feels the brunt of protests, expects July sales drop in ‘early teens’

The operator of Hysan Place and Lee Theatre shopping centres expects its tenants to adopt a wait-and-see attitude before they sign new leases

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Anti-extradition bill protesters flood Causeway Bay on June 16, 2019. The frequent protests in the area over the past two months has affected the sales of shopping centre operators like Hysan Development. Photo: Winson Wong

Published: 8:31pm, 13 Aug 2019Updated: 11:34pm, 13 Aug 2019

Hysan Development, the biggest landlord in Hong Kong’s shopping district Causeway Bay, said that overall sales at its shopping centres is likely to have fallen by at least 10 per cent in July, as the regular extradition bill protests in the area kept shoppers away.

“For July ... I believe a drop can be seen. The initial estimate will be in early teens, a drop of at least 10 per cent,” Roger Hao, Hysan’s chief financial officer, said after the firm reported an 8.9 per cent rise in an underlying profit to HK$1.39 billion (US$177.15 million) for first half, on Tuesday.

Turnover rose 9.1 per cent to HK$2.09 billion in the comparable period.

Hao added that sales in the three months to June grew at 3 per cent on year, lower than the 5 per cent in the first quarter.

Irene Lee (centre), chairman of Hysan Development. Photo: Lam Ka-sing

Even Lifestyle International Holdings, which operates a Sogo department store in the same area, reported a drop in footfall and lower sales for the first half because of the protests.

“There is definitely an impact because indeed, starting from July and August, [the protests] are more intense,” said Irene Lee, chairman of Hysan Development, which controls the upmarket Hysan Place and Lee Theatre shopping centres in the district. “I hope we can weather the storm together.”