US private equity firm Carlyle Group has agreed to buy a 49 per cent stake in two Chinese shopping malls – Suzhou In-City Mall and Hangzhou Gudun In-City Mall.

The two shopping malls are owned and operated by Szitic Commercial Property (SCP).

Located between Suzhou Industrial Park and the old city centre, Suzhou In-City Mall has four above ground floors and one basement retail floor with an aggregate gross floor area of 136,000 sqm.

The Hangzhou Gudun In-City Mall has four above ground floors and two basement floors for car parks with an aggregate gross floor area of 52,000 sqm.

SCP chairman and CEO Liye Ding said the partnership will enable SCP to expedite its business development and expansion plans, as well as enhance the diversity and quality of its tenant portfolio.

Carlyle Asia Real Estate, through its MD and head Jason Lee, said it is confident in the prospects of China’s retail sector.

“Rising household disposable income, continuing urbanisation, changing demographics and government initiatives to promote domestic consumption will continue to benefit China’s retail sector, supporting growth in both rent and capital value for well-operated retail properties like In-City shopping malls operated by SCP,” said Lee.

Financial terms of the acquisition were not disclosed.