A major Chinese property developer and a leading luxury retail group have signed a deal to bring a high-end shopping complex to the heart of Guangzhou, in south China's Guangdong Province. Yuexiu Group and Beijing Hualian (SKP) formally agreed on March 2 to co-develop the Guangzhou SKP project on the site of the former horse racing course in the city's Zhujiang New Town central business district.
Under the agreement, Yuexiu Group will be responsible for development and construction, while SKP will handle the operations of the planned 125,000-square-meter commercial center. The project aims to introduce a cluster of global luxury fashion brands. Construction is scheduled to begin by the end of March, with completion expected within three to four years.
Chen Qiang, Chairman of Yuexiu Group, stated at the signing ceremony that the goal is to build an "international first-class urban complex" integrating parks, retail, hotels, offices, and residences. He projected that upon opening, Guangzhou SKP would become a "new world-class consumption landmark" with annual sales exceeding 10 billion yuan. "It will significantly enhance Guangzhou's ability to attract high-end commercial resources," Chen said.
Zhang Kun, President of Beijing Hualian (SKP), expressed confidence in the Guangzhou market and the broader Guangdong-Hong Kong-Macao Greater Bay Area. He said SKP would leverage its experience and aim to innovate further, striving to make the Guangzhou outlet a "new benchmark project" for the region.
This move marks SKP's first physical store in south China. The retailer, which operates flagship stores in Beijing and Xi'an known for high sales volumes, had been in discussions for the Guangzhou project for several years. It signed a strategic framework agreement with the Guangzhou municipal government in August 2022 and a cooperation intent agreement with Yuexiu Group in 2023. The final agreement was reached less than a week after Yuexiu Group secured the land parcel for the project.