(Bloomberg) -- New World Development Co., the Hong Kong real estate company controlled by the billionaire Cheng family, is in talks with luxury giant Louis Vuitton to open a mega store in one of the developer’s signature malls, according to people familiar with the matter. The new store would occupy about 40,000 square feet at the K11 Musea mall, making it one of Louis Vuitton’s largest in Asia, said the people, who asked not to be identified discussing private matters.
The store could feature a museum, a cafe and a lounge for the brand’s VIP customers, they said. Details over rent remain unclear. Discussions are at an advanced stage, but details could still change and the deal could still fall apart, the people said.
New World didn’t immediately respond to a request for comment. A spokesperson for LVMH declined to comment. New World’s shares rose as much as 2.
2% Tuesday morning. If an agreement is reached, the expansion of fashion conglomerate LVMH’s largest brand would inject some confidence into Hong Kong’s retail industry and help its ailing commercial property sector. It would also be a boost for New World, which has been struggling with debt woes and uncertainty over its leadership.
The group’s retail rents could rise with the new store drawing stronger foot traffic, said Bloomberg Intelligence analysts including Patrick Wong in a note Tuesday. Located near the city’s famous Victoria Harbor and with a fashion-forward design incorporating arts and cultu.