Singapore-listed mall owner and operator CapitaMalls Asia (CMA) has won a tender to acquire Grand Canyon Mall in Beijing for 1.74 billion yuan (S$356.6 million).
The mall, which was put up for sale by Capital Airport Real Estate Group Co, will be CMA's 10th in China's capital city, the company said on Monday.
Including acquisition-related expenses, CMA's total investment for the mall is expected to amount to 1.82 billion yuan, or about 26,000 yuan per sq m, the company said. Grand Canyon Mall has a total gross floor area of about 70,000 sq m, excluding the 403-lot car park.
The mall is currently about 93 per cent occupied by tenants including Carrefour, Poly Cinema, H&M, Gap, Sephora and Watsons, CMA said. The acquisition is subject to the approval of the Chinese government.
Grand Canyon Mall, which is now in its third year of operations, is located along the South Third Ring West Road in Fengtai District, one of Beijing's six core districts with a population of about 2.2 million, CMA said.
Last year, Fengtai District's annual urban disposable income per capita grew 11.5 per cent year-on-year to about 34,200 yuan, ranking it the highest among the six districts. Total retail sales also increased 11.7 per cent to reach about 83 billion yuan last year.
"With a convenient and strategic location well-supported by extensive public transport connections, the mall meets the underserved retail needs and aspirations of the residents and office workers in this region," said Mr Lim Beng Chee, CEO of CapitaMalls Asia.
He added that the company may offer the mall to CapitaRetail China Trust, freeing up its balance sheet for other opportunities.