CapitaLand Retail China Trust Management Limited (CRCTML), the manager of CapitaLand Retail China Trust (CRCT), has grown its net property income for its fourth quarter by 6.5 per cent.
It registered RMB169.1 million (US$24.6 million) in NPI for the quarter ending December 31, compared to RMB158.9 million for the corresponding period the previous year.
CRCTML says the increase was driven mainly by the first full-quarter contribution from CapitaMall Xinnan (formerly Galleria, Chengdu), which was acquired on September 30.
NPI for the period 12 months to the end of September was RMB669.8 million, 4.1 per cent higher than the RMB643.5 million for the previous year.
CRCTML chairman Victor Liew says China is growing from a bigger base at a rate that is still considerably faster than those of most other economies. “We remain positive that CRCT’s portfolio of family-oriented shopping malls will continue to benefit from China’s growing urban population and rising retail sales.”
CRCTML CEO Tony Tan says efforts to introduce new fashion and accessories brands to the Chengdu mall are on track, and leases signed in the fourth quarter yielded robust rental reversions as high as 34 per cent.
In Wuhan, the reopening of Zhongshan Avenue and launch of a new metro have greatly improved CapitaMall Minzhongleyuan’s accessibility, says Tan. “The mall stands to benefit further from the government’s plans to transform Zhongshan Avenue into a lifestyle destination.
“To tap the area’s growth, we have been refreshing the mall’s tenant mix to widen its appeal. These include sportswear brands Adidas, Nike and Onitsuka Tiger, and new dining concepts. Also, UrWork has opened a coworking space at the mall.”
CapitaMall Minzhongleyuan ended the year with an improved committed occupancy of 93.6 per cent.
Following a faccade makeover, CapitaMall Wangjing has recorded strong tenant sales growth of more than 15 per cent for the fourth quarter. “Riding on the momentum, we will continue to bring in more innovative concepts, including a coworking space run by UrWork.”
CRCT is the first China shopping mall Real Estate Investment Trust (REIT) in Singapore, with a portfolio of 11 income-producing malls in six mainland cities: CapitaMall Anzhen, CapitaMall Grand Canyon, CapitaMall Shuangjing, CapitaMall Wangjing and CapitaMall Xizhimen in Beijing; CapitaMall Xinnan in Chengdu, Sichuan province; CapitaMall Qibao in Shanghai; CapitaMall Minzhongleyuan in Wuhan, Hubei province; CapitaMall Erqi in Zhengzhou, Henan province; CapitaMall Saihan in Hohhot, Inner Mongolia; and CapitaMall Wuhu in Wuhu, Anhui province. As at December 31, the total asset size of CRCT is about S$2.8 billion (US$1.9 billion).
