29 August 2012

Taubman Asia and Beijing Wangfujing form JV for Shopping Center in Xi'an, China

Hong Kong – 29 August 2012 (PRNEWSWIRE) -- Taubman Asia today confirmed a joint venture between Taubman TCBL and Beijing Wangfujing Department Store (Group) Co., Ltd (Wangfujing), one of China's largest department store chains (Shanghai Stock Exchange: 600859). The joint venture will own a controlling interest in and manage a shopping center to be located at Xi'an Saigao City Plaza, a large-scale mixed-use development in Xi'an, China, which is developed by Shaanxi Fuli Real Estate Development Co. Ltd. This is the first retail development by Taubman TCBL in China since the company was formed in late 2011. 

The joint venture between Wangfujing and Taubman TCBL will have the majority ownership of the shopping center. The remaining ownership of the shopping center will be held by Shaanxi Fuli Real Estate Development Co. Ltd. 

Mr. Rene Tremblay, president of Taubman Asia and chairman of Taubman TCBL, said, "This agreement is a major milestone for Taubman TCBL. It is the company's first investment in the China market and we are proud to have formed a strategic partnership with Wangfujing, one of China's most respected department stores." 

Ms. Liu Bing, President and CEO, Wangfujing, commented, "Wangfujing has already completed the initial phase of our company's development target and are now dedicating our efforts to realizing our new strategic direction, and accelerating the development of the shopping mall industry. As such, we are delighted to partner with Taubman on the Xi'an project. We believe that Taubman's profound industry experience will solidify the foundation of our partnership and help set new standards in China through their world-class shopping centers." 

Mr. Thomas Tam, president and chief executive officer of Taubman TCBL, said, "We are confident that by combining Taubman's 62 years of shopping center development and management expertise, with Wangfujing's retailing experience and intimate knowledge of the Chinese consumer, we will create one of the most exciting retail destinations in China, that is well matched to the local market while in line with the best international standards." 

Anchored by a Wangfujing department store, the seven-level Xi'an shopping center is expected to feature a cinema, restaurants, and approximately 300 international and local specialty stores. It is scheduled to open in the third quarter of 2015 and is part of a 5.9 million square feet (gross building area) mixed-use project, which includes two hotels, a residential tower, two serviced apartment towers and an office building.

Taubman Centers, Inc. (NYSE: TCO) is a real estate investment trust engaged in the development, leasing and management of regional and super regional shopping centers. Taubman's 27 owned, leased and/or managed properties, the most productive in the publicly held U.S. regional mall industry, serve major markets from coast to coast. Taubman Centers is headquartered in Bloomfield Hills, Michigan, and its Taubman Asia subsidiary is headquartered in Hong Kong. Taubman TCBL is a China based subsidiary of Taubman Asia. Headquartered in Beijing, Taubman TCBL runs five offices including Beijing, Shanghai, Shenzhen, Chongqing and Chengdu.

Source: Taubman