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CapitaLand has been commissioned by Sichuan Da Yi Real Estate Co. Ltd and Hehua Shengshi (Foshan) Property Development Co. Ltd. to manage the retail components of Leshijie and Hehua International Commercial Plaza, respectively. (Image: CapitaLand)
CapitaLand, via its fully-owned shopping mall business CapitaLand Mall Asia, has entered into three new management contracts in China.
Notably, CapitaLand has been commissioned by Sichuan Da Yi Real Estate Co. Ltd and Hehua Shengshi (Foshan) Property Development Co. Ltd. to manage the retail components of Leshijie and Hehua International Commercial Plaza, respectively.
Leshijie is an integrated development within the up-and-coming district of Pidu in Chengdu while Hehua International Commercial Plaza is a landmark integrated development located near Foshan’s border with Guangzhou.
CapitaLand was also tasked to manage the retail component of Capital Square, an integrated development it is jointly developing with Shanghai Shentong Metro Group.
In an SGX filing, CapitaLand revealed that the deals bring over 115,000 sq m of gross floor area, excluding car park, to the group’s retail footprint and cement its presence in Foshan, Chengdu and Shanghai.
Looking ahead, CapitaLand Mall Asia CEO Jason Leow said the company will “seize more suitable opportunities to grow our retail footprint through management contracts to complement our core strategy of developing, owning and managing malls in Asia.”
“Through our management contract strategy, we are sharpening our competitive edge in China’s top-tier cities and fast-growing regions, where we have already established a scalable business model,” he said.
“The network effect from an enlarged portfolio in these places will further boost our leasing efforts and enhance the effectiveness of our shopper loyalty programme CapitaStar. The management fees generated will also contribute towards enhancing the quality of CapitaLand’s earnings and improving our ROE, as we continue to tap the growth opportunities of China’s rising consumerism.”
This article was edited by Denise Djong.
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