SKP, one of the most profitable Chinese luxury retailers, is entering the Southern China market via a partnership with Yuexiu Property, the Guangzhou-based real estate developer.
The partnership was officially signed in Guangzhou on Monday.
Feng Zhonghua, Party Secretary of Guangzhou; Sun Zhiyang, mayor of Guangzhou; Ji Xiao An, the chairman of SKP, and Chen Qiang, Yuexiu Group chairman, attended the signing ceremony.
According to an SKP statement shared with WWD, SKP Guangzhou is expected to become “a new consumer landmark in the Greater Bay Area” with annual sales of over 10 billion renminbi, or $1.4 billion.
According to local media reports, the project aims to drive 30 billion renminbi, or $4.3 billion, in retail sales within six years of opening.
In addition, the new luxury department store will help “drive the coordinated development of upstream and downstream industrial chains including fashion, exhibitions, culture, tourism and high-end services,” said SKP.
Construction of the 1.35-million-square-foot plot will began in late March and the store aims to be open in three to four years, according to state media reports.
Under the agreement, SKP will run retail operations while Yuexiu Property will be in charge of construction. Sybarite, the London-based architecture firm and SKP’s longtime partner, will design the project.
SKP Guangzhou will become the crown jewel of the new Tianhe District Machang, or Racecourse area, which will include SKP Guangzhou, a high-end residential area, office buildings, sports venues, a green corridor and educational facilities.
The mixed-use complex will play a crucial role in reshaping Guangzhou’s commercial real estate landscape.
Following the announcement of SKP Guangzhou, the Southern commercial hub will consist of five major retail complexes: Taikoo Hui Phase I and Phase II, Julongwan Taikoo Li, K11, Baietan MixC, and SKP.
The Machang area was auctioned off last Wednesday to Yuexiu Property for a record-breaking 23.6 billion renminbi, or $3.4 billion, deal after nine hours and 243 rounds of intense bidding.
Founded in 1983, Yuexiu Property is a state-owned real estate developer with major developments across Shanghai, Beijing, Shenzhen and Guangzhou.
