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Singapore-listed CapitaLand announced on Thursday (18 January) that it is considering to invest in what could become its largest development in China.
In line with this, its wholly-owned unit CapitaLand China has signed a Strategic Cooperation Memorandum of Understanding with Wuchang’s district government.
While the non-legally binding agreement only lays out the general principles in developing an integrated project on a prime site in Wuchang, both parties will further negotiate the collaboration’s detailed terms before entering into definitive contracts.
Notably, Wuchang is one of the 13 districts of Wuhan, the largest city in central China, boasting a population of approximately 12 million.
“As the major transport and commercial hub in central China with strong economic fundamentals, Wuhan is a high-growth city that is set to benefit further from China’s Belt and Road Initiative,” said CapitaLand’s President and Group CEO Lim Ming Yan.
“The city’s rapid urbanisation has created a high demand for quality real estate products and services, particularly integrated developments.”
This potential major joint venture is part of CapitaLand’s strategy of investing in five core city clusters in China. These comprise Beijing and Tianjin; Guangzhou and Shenzhen; Chengdu, Chongqing and Xi’an; Wuchang, Hankou, and Hanyang; and Shanghai, Hangzhou, Suzhou and Ningbo.
“In China, we are focused on deepening our presence in core city clusters where we can leverage our existing operations to grow faster,” Lim noted.
For instance, the company has opened CapitaMall Westgate in Hankou, Wuhan last April. With a gross floor area (GFA) of about 250,000 sq m, the development is CapitaLand’s fifth-biggest integrated project in the country and its largest in central China. With a committed occupancy of around 93 percent during its opening, the project comprises one SOHO block, two office towers and a shopping mall.
Moreover, CapitaLand owns and manages a second integrated project in Hankou, namely CapitaMall Wusheng, which comes with serviced residence Somerset Wusheng.
Among the firm’s other properties in Wuhan are two shopping centres – CapitaMall 1818 in Wuchang and CapitaMall Minzhongleyuan in Hankou – while its subsidiary The Ascott Limited also runs four serviced residences in Wuhan.
Furthermore, CapitaLand China Chief Executive Lucas Loh revealed that the company currently owns and manages 23 integrated projects with a total GFA of more than 6.2 million sq m in first- and second-tier cities in the country, cementing CapitaLand’s status as a foreign developer with the most number of integrated developments in China.
This article was edited by Keshia Faculin.
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