China Vanke-led consortium buys 20 malls from Singapore’s CapitaLand for US$1.29 billion
The malls, with a combined area of 950,000 square metres, are located in 19 cities including Beijing
China Vanke, one of China’s largest developers, its commercial property unit SCPG Commercial Real Estate and private equity company Hopu Investment Management have teamed up to acquire 20 shopping malls across China from Singapore’s CapitaLand.
The deal for the malls is worth 8.36 billion yuan (US$1.29 billion), the buyers said on Friday, pending approval from Chinese regulators. The malls, with a combined area of 950,000 square metres, are located in 19 tier one, two and three cities including Beijing, Chengdu, Dongguan, Foshan and Yangzhou, according to SCPG.
“We are bullish about China’s existing commercial property sector, as China’s urbanisation process gathers momentum and people’s demand for a better life rises. The acquisition of CapitaLand’s mature properties aligns well with SCPG’s growth strategy,” said Ding Liye, the company’s president.
Alvin Yip, managing director and co-head of investment and advisory services at Cushman & Wakefield China, said the acquisition has quickly boosted the company’s portfolio.
“These community malls will generate higher yield and appreciate significantly if managed properly or withdrawn from the market,” said Yip.
“The rising purchasing power, mature consumption culture and commercial atmosphere in China has created a fertile ground for shopping and leisure hubs not only in tier 1 cities, but also nationwide.”