Singapore-listed mall developer Capitamalls Asia is optimistic about the China market as it expects to double the value of its investments in the mainland.

Capitamalls Asia’s value of its mainland holdings are expected to top US$20 billion in three to five years.

“One reason that the China market gives us confidence is tenant sales, which are improving year after year,” said Simon Ho Chee-hwee, deputy CEO of Capitamalls Asia.

The mainland’s retail sales are expected to grow by 16 to 17 per cent this year.

Currently in China, where it operates 42 malls and has 15 under construction, accounts around 40 per cent of Capitamalls Asia’s total assets value of US$29.4 billion consisting 98 malls in Singapore, Malaysia, China, India and Japan.

Despite the economic slowdown, Capitamalls Asia believes that demand for retail properties will continue to accelerate in the mainland.

“China is definitely one of our big markets and we are going to focus on it a lot,” Chee-hwee said.

He added that from now until December, the company will open seven more malls in China targeting Shanghai, Beijing, Wuhan, Chongqing and Chengdu.

Recently, Capitamalls Asia established a US$1 billion fund called CapitaMalls China Development Fund III for developing shopping malls in China.

GB