SINGAPORE - CapitaLand announced on Wednesday (June 28) three new management contracts in the Chinese cities of Chengdu, Foshan and Shanghai.
The contracts with its wholly owned shopping mall business CapitaLand Mall Asia will add more than 115,000 square metres (sqm) of gross floor area (GFA), excluding car park, to the group's retail footprint
Mr Jason Leow, CEO of CapitaLand Mall Asia, said: "Since embarking on our mall network expansion strategy last August, we have secured six management contracts in Singapore and China to date, growing our portfolio by close to 300,000 sqm within a year. The positive momentum affirms the value of CapitaLand's retail platform to property owners, and the scalability of our management contract model.
"Looking ahead, we will seize more suitable opportunities to grow our retail footprint through management contracts to complement our core strategy of developing, owning and managing malls in Asia."
In Chengdu, CapitaLand has been commissioned by Sichuan Da Yi Real Estate Co. Ltd to manage the retail component of Leshijie, an integrated development in the up-and-coming Pidu district. This follows the acquisition of CapitaMall Xinnan (formerly known as Galleria, Chengdu) by CapitaLand Retail China Trust last September. With this contract, CapitaLand will be managing seven malls in Chengdu.
Across Western China, CapitaLand owns and manages a total of 15 malls, up from 12 malls 10 months ago.
In Foshan, CapitaLand will be managing the retail component of Hehua International Commercial Plaza, a landmark integrated development near Foshan's border with Guangzhou, on behalf of Hehua Shengshi (Foshan) Property Development Co Ltd.
In Shanghai, CapitaLand will manage the retail component of Capital Square, an integrated development it is jointly developing with Shanghai Shentong Metro Group, which develops, constructs and operates railway and metro lines in the city. Just earlier this month, CapitaLand acquired Guozheng Center, a newly completed office development in Shanghai, raising the Group's commercial assets under management in the city to 19 properties that span more than 1.3 million sqm in GFA. CapitaLand's retail network in the city now comprises seven malls.