Hang Lung Properties signed an agreement with Shanghai Join Buy on Dec 12 to take over the commercial operation of the site at No 1038 West Nanjing Road, one of Shanghai's most prominent retail addresses.

The site was formerly home to Westgate Mall, a landmark shopping center that once housed Isetan, the Japanese upscale department store. Westgate Mall Isetan opened in 1997 and quickly became a symbol of high-end retail in Shanghai.

According to industry sources, Hang Lung plans to redevelop the site into a younger, lifestyle-oriented retail destination, reflecting changing consumer preferences and urban living trends.

The move sends a clear signal of Hang Lung's confidence in Shanghai, particularly in Jing'an district.

At present, aside from Plaza 66 in Jing'an and Grand Gateway 66 in Xuhui, most of Hang Lung's Chinese mainland projects are located in second-tier cities. With the addition of the West Nanjing Road project, the company will operate three projects in Shanghai, two of them in Jing'an.

Plaza 66 on West Nanjing Road has been a standout success. It is among the three commercial buildings in Shanghai that generate more than 10 billion yuan (about $1.42 billion) in annual tax revenue. The mall houses more than 100 internationally renowned brands, with a strong concentration of top-tier luxury labels. Its office towers are home to numerous multinational headquarters, creating an integrated ecosystem where flagship stores operate below and corporate offices rise above.

This year, West Nanjing Road has continued to deliver strong commercial performance. High-profile launches such as The Louis, a giant ship that combines exhibition space, dining, and retail, have kept the area firmly in the spotlight.

Development along West Nanjing Road has also accelerated in recent years. The western section features distinctive retail destinations, including Reel Mall, Jing An Kerry Centre, and Jiuguang Department Store, all of which are gaining momentum. Crystal Plus, which reopened after renovation, has reported sharp increases in both foot traffic and sales.

In the east, HKRI Taikoo Hui and Zhangyuan have emerged as major destinations. Zhangyuan, positioned as an international showcase for both global and domestic brands, opened its western section earlier this year, with the eastern section scheduled to open next year.

The central section of West Nanjing Road is anchored by Plaza 66, CITIC Square, and the former Westgate Mall site. While Plaza 66 remains Shanghai's leading luxury mall and CITIC Square has operated steadily following recent adjustments, the closure of Westgate Mall left the middle stretch feeling less dynamic.

Industry analysts believe that once the redevelopment of the commercial section at No 1038 West Nanjing Road is completed, the overall appeal and commercial strength of the central section will be significantly enhanced. Together, the three neighboring complexes are expected to form a cohesive, high-end lifestyle cluster, further reinforcing West Nanjing Road's status as an international commercial destination.

Sources: Shanghai Observer, official WeChat account of Shanghai Jing'an Media Center "jaxwzx"