06 September 2012

CapitaMalls Asia acquires its third shopping mall in Wuhan, China

Singapore, Hong Kong and Beijing - 06 September 2012 - CapitaMalls Asia Limited announced today that it is acquiring a new shopping mall in Wuhan, China – its third in the city. 

CapitaMalls Asia has signed an agreement to acquire the retail component of an integrated development which also includes residential and office components, situated along Zhong Bei Road in Wuchang District. It is acquiring the shopping mall from a subsidiary of China Railway Construction Corporation Limited (“CRCC”), one of the largest construction companies in China listed in Shanghai and Hong Kong and a state-owned enterprise. 

Wuchang District is the most populated district in Wuhan with a population of over 1 million. The mall’s catchment within a 5 kilometre (km) radius includes about 700,000 residents, the Hubei provincial government headquarters, other government complexes and Wuhan University and Huazhong University of Science and Technology – the top two universities in Hubei Province in terms of academic excellence. 

The mall will enjoy good connectivity with a direct link from the basement to Zhou Jia Da Wan station on Metro Line 4, which will be operational in 2013. Metro Line 4 is a key transportation line linking Wuchang and Hanyang, two of the three main areas (Hanyang, Hankou and Wuchang) in Wuhan. 

Subject to planning approval, the eight-storey shopping mall (from Basement 1 to Level 7) will have a total gross floor area (“GFA”), excluding car park, of about 70,700 square metres (“sq m”). Positioned as a middle- to upper-middle income, one-stop shopping destination, the proposed mall will house popular international and local fashion brands, a supermarket, children-related specialties, entertainment facilities and good quality restaurants offering local and international cuisine. When completed in 2014, it will cater to the needs of the working professionals, government officials and residents working and living in the vicinity. The mall will have about 900 car park spaces. 

On a completed basis, the total investment cost of the shopping mall is expected to be about RMB1,156.0 million (S$228.3 million / HK$1,413.5 million), or about RMB16,354 (S$3,229 / HK$19,996) per sq m of GFA. 

Mr Lim Beng Chee, CEO of CapitaMalls Asia, said: “Wuhan is a major transport and commercial hub in central China. It is a high growth city with strong economic fundamentals. Wuhan’s GDP growth averaged 14.0% per annum over the last five years, above the average 10.0% per annum for Beijing and Shanghai. In addition, its per capita urban disposable income rose 14.1% while retail sales grew 18.0% in 2011 – slightly higher than the national growth of 17.1%. This gives us confidence in the potential of the retail market in Wuhan.” 

CapitaMalls Asia Limited is one of the largest listed shopping mall developers, owners and managers in Asia by total property value of assets and geographic reach. It has interests in and manages a pan-Asian portfolio of 101 shopping malls across 52 cities in the five countries of Singapore, China, Malaysia, Japan and India, with a total property value of approximately S$30.7 billion (HK$190.1 billion) and a total GFA of approximately 92.4 million sq ft. 

Source: CapitaMalls Asia