Veeko buys New Territories retail store

1 min readUpdated Jun 4, 2025May 13, 201911:23 PM

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Veeko International has sealed a deal to buy a retail property in the New Territories, with an eye to converting it into one of its own stores.

Veeko – which owns its namesake fashion brand along with Wanko, and the Colourmix and Morimor cosmetics-store chains – has paid HK$117.5 million to acquire the ground floor of 88 San Hong Street North in the New Territories. The 833sqft space is currently occupied by Yue Fung Dispensary Co, paying $248,000 a month until its lease expires on December 31, 2020.

The company says that while the retail space is currently tenanted, “upon the expiry of the existing tenancy agreement, the group shall evaluate the benefit of continuing leasing of the property against the benefit of using the property as the group’s store”.

Savills has independently valued the space at $120 million.

The transaction is scheduled to be completed by June 18.

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What this means

Veeko's acquisition of the New Territories retail space is a sound defensive play to secure a valuable asset and reduce long-term rental costs, especially in a volatile property market. This contrasts with rivals' strategies like 7-Eleven's focus on experiential concept stores in Macau, or Panpuri's broader Asian expansion into leased outlets. By owning rather than leasing, Veeko gains control and mitigates future rent increases, putting pressure on competitors operating entirely on rental agreements. This strategy aligns with the stability seen in other market entries like Kau Kee Food Factory's first retail store. The immediate risk lies in the 2020 tenancy expiry, after which the company must either convert the space or find a new tenant. The true success hinges on its planned use post-December 2020.

Aiko Tanaka · Retail News Asia newsroom

Questions & Answers

What is the expected completion date for Veeko's purchase of the retail property?

The transaction for the retail space in the New Territories is scheduled to be completed by June 18. This deal involves Veeko International acquiring the ground floor of 88 San Hong Street North.

What is the current rental income generated by the property Veeko is acquiring?

The current tenant, Yue Fung Dispensary Co, pays $248,000 a month for the 833sqft space. This tenancy agreement is set to expire at the end of December 2020.

What are Veeko's intentions for the retail space once the current lease ends?

Veeko will evaluate whether to continue leasing the property or convert it into one of its own stores. The company intends to assess the benefits of both options after the existing tenancy agreement expires.

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