CapitaLand tie-up to develop China malls

CapitaLand tie-up to develop China malls July 17, 2007
Posted by propertyforesight in Developer Moves, China. add a comment

CapitaLand has signed a cooperative agreement with China Vanke, China’s largest residential developer, in a move that will increase the Singapore property giant’s potential pipeline of retail mall assets in the country.

Under the agreement, CapitaLand and Vanke will jointly develop identified retail assets - for ongoing projects and upcoming ones - in Vanke’s residential townships. These retail assets will then be acquired by CapitaLand ‘at the appropriate time’, the company said.

CapitaLand and Vanke will also employ the same partnership arrangement for potential greenfield residential township projects, which Vanke intends to continue building in China.

The retail assets could eventually be injected into CapitaLand’s CapitaRetail China Trust (CRCT), which is made up of some of CapitaLand’s retail assets in China. ‘There is a possibility of them (the new retail assets developed jointly with Vanke) being ultimately injected into CRCT, but this will only be in the medium to long term,’ said a CapitaLand spokesperson.

CapitaLand now has over 70 malls in its China portfolio, and this agreement is expected to add to the number.

‘The partnership with Vanke is not only mutually beneficial but also a strong endorsement from China’s largest developer of our retail property development and management skill sets, and on-ground delivery capabilities in China,’ said Liew Mun Leong, chief executive of CapitaLand.

‘In addition, by having our retail property presence in these townships, residents in Vanke’s properties will enjoy even higher quality of living and there will be greater appeal for such developments among the local population.’

The joint venture is expected to raise the standards of residential township projects in China to be on a par with international township developments - where residential and retail components are well laid-out to allow residents to enjoy F&B and retail facilities within easy reach, said CapitaLand.

CapitaLand’s shares closed 20 cents down at $7.80 yesterday.

Source: The Business Times