Hong Kong real estate market stalwart Ronnie Chan Chi-chung has stepped down as chairman of Hang Lung Group after more than three decades at the helm, passing the baton to the third generation in the family to run one of the city’s biggest commercial landlords.
Chan, 74, retired at the conclusion of the developer’s annual meeting of shareholders on Friday, according to a company filing. He will also relinquish his role as chairman and executive director at the group’s 60 per cent-owned Hang Lung Properties, and will be made honorary chairman.
He joined the company 12 years after his father Chan Tseng-chi founded the group in 1960, and oversaw the group as chairman from 1991. Hong Kong experienced a boom-and-bust cycle over that 33-year period, when rife speculation sent home prices skyrocketing through the 1990s, before social unrest and the Covid-19 pandemic combined to hurt the market.
His son Adriel Chan, 41, will take over as the group chairman in a previously announced succession plan. He joined the group in 2010 and was appointed as an executive director in 2016 and vice-chairman in September 2020.
The new chairman believes that there are big development opportunities in Hong Kong and mainland China markets, adding that Hang Lung would pursue growth across the border, where it has gained a foothold since 1992.
China’s commercial and residential real estate market contributed 68 per cent of the company’s rental income last year, according to its latest annual report. It has seven office projects and five residential projects across major cities including Shanghai, Wuxi, Kunming, Wuhan and Shenyang.
Although the operating environment has been difficult recently, Adreil Chan said there is room for growth in the future. It depends on how the group can capitalise on the opportunities, especially in high-end retailing. Hang Lung is targeting local consumers whose penchant for luxury goods.
The expansion of Plaza 66 in Shanghai, which houses the flagship stores of French luxury icons Hermes and Dior, is expected to bring new experiences to customers and attract stores when it is completed in 2026.
The company has obtained approval from the local government to utilise an unused area to expand the 55,000 square metre (592,000 sq ft) mall on West Nanjing Road in Jingan district, it said. The extra 3,000 square metres of retail space can accommodate 20 new stores.
Hang Lung, which owns many properties in Hong Kong, will continue to monitor the market to increase its land bank. A surge in interest rates since March 2022 has diminished the market appeal, Adriel Chan said.
Hang Lung Group reported a 3 per cent increase in net profit to HK$2.8 billion (US$358 million) in 2023, while revenue from property leasing and sales was little changed at HK$10.8 billion.
