Through its subsidiary CapitaLand Mall Asia, Singapore real-estate company CapitaLand is accelerating its retail network expansion in China via three new management partnerships.
These deals add more than 115,000 sqm of gross floor area (GFA), excluding parking, to CapitaLand’s retail footprint while entrenching its presence in the major cities of Chengdu, Foshan and Shanghai.
“Since embarking on our mall network expansion strategy last August, we have secured six management contracts in Singapore and China, growing our portfolio by nearly 300,000 sqm within a year,” says CapitaLand Mall Asia CEO Jason Leow.
“Looking ahead, we will seize more opportunities to grow our retail footprint through management contracts to complement our core strategy of developing, owning and managing malls in Asia.”
Leow says the group has sharpened its competitive edge in China’s top-tier cities and fast-growing regions through its management contract strategy. “We have already established a scalable business model. The network effect from an enlarged portfolio in these places will further boost our leasing efforts and enhance the effectiveness of our shopper loyalty program CapitaStar.”
In Chengdu, CapitaLand has been commissioned by Sichuan Da Yi Real Estate to manage the retail component of Leshijie, an integrated development in the Pidu district. This follows the acquisition of CapitaMall Xinnan (formerly Galleria, Chengdu) by CapitaLand Retail China Trust last September.
Seventh mall
The Leshijie integrated development comprises a shopping mall, hotel and residential units. The mall spans five storeys, with four levels above ground, and is close to arterial roads, two subway stations and one tramcar station. When it opens in 2019, it will serve a population catchment of about 300,000 people.
This contract boosts CapitaLand’s retail footprint in Chengdu to seven malls. Across western China, CapitaLand owns and manages a total of 15 malls, up from 12 malls 10 months ago.
In Foshan, CapitaLand will be managing the retail component of Hehua International Commercial Plaza, a landmark integrated development near the border with Guangzhou, on behalf of Hehua Shengshi (Foshan) Property Development.
The plaza is a key urban regeneration project accessible by two arterial roads that connect to Guangzhou, and near an upcoming metro line. The development comprises an 180m-tall office/hotel tower, a shopping mall and residential units. The five-storey mall with four levels above ground is expected to open next year.
In Shanghai, CapitaLand will manage the retail component of Capital Square, an integrated development it is jointly developing with Shanghai Shentong Metro Group, which develops, builds and runs railway and metro lines in the city. CapitaLand now has 19 properties in Shanghai, including seven malls.
In New Jing’an district and with direct connection to three subway lines, Capital Square comprises offices, a shopping mall and residential units. The five-storey retail component, with two basement levels, is scheduled to open this year.
