SINGAPORE: Property developer CapitaLand has announced that it will divest its stakes in a group of companies that hold 20 retail malls in China for about S$1.71 billion, as part of a broader effort to enhance its portfolio.
In a statement released before trading opened on Friday (Jan 5), CapitaLand said the malls have an average gross floor area of about 40,000 sq m excluding car park space, and are spread across 19 cities.
CapitaMall Chengnanyuan, at Nanchang, China. (Photo: CapitaLand)
Here is the full list of the 20 malls included in the transaction:
(Source: CapitaLand)
The malls are targeted for completion in the second quarter of this year and CapitaLand said the transaction is expected to generate net proceeds of around S$660 million, as well as a net gain of around S$75 million.
CapitaMall Quanzhou, at Quanzhou, China. (Photo: CapitaLand)
The company stressed that the loss of recurring income arising from this transaction “will be limited”, as these 20 malls accounted for approximately 4 per cent of the company’s total portfolio and 7 per cent of its China shopping mall portfolio valuation as of Jun 30, 2017.
President and Group CEO of CapitaLand Lim Ming Yan said with China “on the cusp of transformative changes to its retail industry”, the company is seizing this window of opportunity to reconstitute its mall portfolio.
“We will continue to invest in dominant assets in core Chinese city clusters, where we already enjoy a competitive advantage,” he said.
CapitaMall Zhaoqing, at Zhaoqing, China. (Photo: CapitaLand)
“The rejuvenated portfolio will enable CapitaLand to respond more effectively to the paradigm shifts in Chinese consumer behaviours, and strengthen our position as we continue to tap the growth in China’s rapid urbanisation,” Mr Lim added.
In 2017, CapitaLand opened a record 1 million sq m of retail space across eight developments in Singapore, China and Malaysia – its largest retail space offering in a single year.
It capped the year by unveiling Suzhou Center Mall, the developer’s largest mall in its portfolio last November.
In the same month, CapitaLand announced a joint venture with its Chinese shopping mall real estate investment trust CapitaLand Retail China Trust (CRCT) to acquire Rock Square Mall, an 83,591 sq m shopping mall in Guangzhou.
