Hong Kong’s Sogo mall operator seeks $1 billion loan refinancing

Hong Kong mall operator Lifestyle International Holdings is in talks with banks to refinance a HK$8 billion ($1.03 billion) loan, months after lenders relaxed terms on the borrowing as earnings remain under pressure, said people familiar with the matter. Proceeds from the new financing for Future Develop, a subsidiary of Lifestyle International, will be used to refinance the five-year loan maturing in June, the people said, who asked not to be identified discussing private matters. The existing deal is secured against the Sogo department store in Hong Kong’s Causeway Bay. The talks come about six months after lenders agreed to pause routine checks on a rule in the loan agreements for two facilities that requires the company to maintain a minimum level of earnings, the people said. The so-called covenant waiver was sought after Lifestyle International’s profitability fell short of required threshold, they said, adding that one of the loans is backed by the Causeway Bay property, while the other is secured against another Sogo store in Kai Tak. Lifestyle International didn’t immediately respond to requests for comment. China market e-commerce disruption Sogo malls, especially the flagship Causeway Bay one, have long been among Hong Kong’s prime retail destinations. However, traditional retailers like department stores have been facing even more pressure from the mainland’s growing e-commerce penetration, the rise of low-end stores and weak domestic consumer sentiment. Lifestyle International was taken private by its chairman, Hong Kong billionaire businessman Thomas Lau Luen-Hung, in a HK$1.9 billion deal after the company warned of an at least 80% plunge in profit in the first half of 2022. Still, Hong Kong’s retail landscape has shown signs of stabilizing. Government data indicates that retail sales rose 6.5% year-on-year in November 2025, citing improving local consumption amid sustained economic growth and increasing visitor numbers. By Apple Ka Ying Li

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Hong Kong’s Sogo mall operator seeks $1 billion loan refinancing