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Given its belief that China could sustain another 150 outlet malls, Beijing Capital Juda plans to open 20 new outlets across 20 cities by 2020, reported the South China Morning Post.
According to the outlet store developer and operator, there are about 50 existing standard outlet malls in the country compared to almost 300 in the US.
“We see great potential in the China market. We believe it can accommodate 200 standard outlets,” said Beijing Capital Juda CEO Bryan Feng.
“Shanghai, for example, can accommodate six outlets from the existing three, given its tens of millions of population and the huge size of the city.”
This year, Beijing Capital Juda intends to open three new outlets in Wuhan, Hangzhou and Nanchang, in addition to its four existing ones including its flagship Fangshan Outlets in Beijing.
The Hong Kong-listed firm was spun off from Beijing Capital Group’s subsidiary, government-owned developer Beijing Capital Land. It is also backed by US private equity firm KKR and China’ state-owned Sino-Ocean Group.
Feng revealed that aside from capital, another advantage of being supported by KKR and Sino-Ocean Group is that they can tap the expertise and resources of both entities for expansion, especially in other countries.
Last year, both jointly invested US$191 million into Beijing Capital Juda, resulting in Sino-Ocean Group holding a 12 percent stake in the firm, while KKR owns a 16 percent stake.
The US company has also invested in European outlets, while Sino-Ocean Group manages a few commercial facilities and has many important industry resources like land and a large network of tenants.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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