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China brands are the next draw for local shopping malls, says Chinese developer

  • The company says it aims to operate 100 shopping malls by 2020
  • It vows to support local brand tenants with marketing, product development and financing

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Chinese developers are turning their focus to the commercial property market amid the slump in the residential segment. Photo: EPA
Daniel Renin Shanghai
Future Land Development Holdings, the eighth-largest mainland developer by sales, is upping its ante on indigenous brands to bolster its commercial property business with plans to double the number of shopping centres it operates in two years.

Chen Deli, co-president of the Hong Kong-listed developer, said the company would reserve more space for indigenous retail brands that can cater to mainland consumers’ surging demands for premium products.

“We want to do something concrete to support local brands in our 100 Wuyue shopping centres,” he said, referring to areas in marketing, product development and financing for tenants without providing the amount of money the company would invest.

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Increasing its focus on commercial properties would help Jiangsu province-based Future Land sustain growth and offset a residential property market slump. The developer currently operates 42 Wuyue-branded shopping malls on the mainland, and is building another 48 commercial projects under the same brand, aiming to bring the total to 100 in 70 Chinese cities by 2020.

It recently signed agreements with six Chinese brands including jewellery chain store June.Wu and garment maker Leemonsan to help them expand their footprints in Wuyue shopping centres across the mainland.

The number of our shopping malls is not a focal point as we expand the scale of our commercial property segment
Ouyang Jie, Future Land Development Holdings

The company was among the fastest-growing developers on the mainland over the past two years despite the government’s austerity measures to curb the housing market.

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