Mall rental growth boosts income for CRCTML
Rental growth has helped boost net property income (NPI) for CapitaLand Retail China Trust Management (CRCTML), the manager of CapitaLand Retail China Trust (CRCT).
Its third-quarter NPI of S$36 million (US$26 million) was up 9.7 per cent over the figure for the same period last year.
For the year to the end of September, NPI rose 10.7 per cent to $116.2 million, mainly driven by the contribution from CapitaMall Xinnan, acquired on September 30 last year, and rental growth from the other multi-tenanted malls. This was partially offset by the divestment of CapitaMall Anzhen on July 1.
In tandem with the divestment, CRCTML recovered about 4700sqm of space on Level 4 of CapitaMall Wangjing ( pictured) from the mall’s anchor tenant, says CEO Tan Tze Wooi. “Plans are progressing well to transform the space to house experiential retail offerings that will inject greater vibrancy to the mall. It is targeted to open in phases from the second quarter of next year.”
During the latest quarter, the group achieved positive rental reversion of 7.5 per cent for its malls on the back of sustained efforts to optimise tenant mix. For example, it added international brand MAC to CapitaMall Xizhimen to upgrade the beauty offering, while technology brand Xiaomi opened at CapitaMall Grand Canyon, contributing to improved sales and shopper traffic.
By year’s end, Xiaomi will also open a store at CapitaMall Xizhimen, as part of a reconfigured space formerly used by a fast-food restaurant.
There has also been a positive rental reversion exceeding 10 per cent at CapitaMall Xinnan, and at CapitaMall Qibao, a rooftop space will be activated as part of an expanded children’s learning playland.
CRCT is the first China shopping-mall real-estate investment trust (REIT) in Singapore, with
a portfolio of 10 properties. Listed at the end of December 2006, it is established with the objective of investing on a long-term basis in a diversified portfolio of primarily retail property in China, Hong Kong and Macau.