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Tag: CapitaLand

  • CapitaLand accelerates growth momentum in Vietnam with massive investments

    CapitaLand accelerates growth momentum in Vietnam with massive investments

    CapitaLand Vietnam plans its first mixed-use project for Hanoi.

    In Tay Ho district with West Lake views, the US$217 million project will comprise 19,000sqm of retail space, about 213,000sqm of office space and 380 residences including SoHo apartments.

    Its 0.9ha site connects to both the new and old business districts and is close to the diplomatic district and new government offices as well as the expatriate enclave of Xuan Dieu. It is less than 20 minutes’ drive from Noi Bai International Airport.

    “This mixed-use development allows us to strategically diversify and optimise our Vietnam portfolio with both good trading returns and a strong recurring income stream,” says CapitaLand president/group CEO Lim Ming Yan.

    The Singapore-based group has also set up its second commercial fund in Vietnam, CapitaLand Vietnam Commercial Value-Added Fund (CVCVF), which has closed at $130 million and will have a life span of eight years. CapitaLand and EA Commercial Holdings each hold a half interest in CVCVF, which will focus on grade-A commercial properties.

    After Singapore and Malaysia, Vietnam is the third-largest Southeast Asian market for CapitaLand. At the end of December it had $717 million worth of gross assets under management in Vietnam.

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  • CapitaLand Mall Trust remain stable despite challenges as retail sector stalls

    CapitaLand Mall Trust remain stable despite challenges as retail sector stalls

    Despite challenges in the retail sector, CapitaLand Mall Trust (CMT) maintained stability in its fourth quarter.

    “This points to the underlying strength of our well-located malls, and the management’s continuous focus on enhancing their offering as well as improving efficiency,” says CMT management company CMTML chairman Professor Richard Magnus.

    CMT achieved net property income (NPI) of S$119.3 million (US$90.6 million) for the period, to the end of December, up 2.6 per cent from the final quarter the previous year.

    With Singapore’s GDP growth expected to be stable this year, competition in the retail sector will remain intense, with new retail space coming onstream, says Magnus. “To stay at the forefront of a dynamic retail landscape, CMT will continue to push the boundaries and explore new ways to future-enable its malls.”

    CMT’s malls had an occupancy rate of 99.2 per cent at December 31, says CMTML CEO Tony Tan.

    “As part of our ongoing effort to enhance the offline and online shopping experience in our malls, we introduced seven click-and-collect lounges under CapitaLand’s partnership with e-commerce player Lazada. They are in Bedok Mall, Bugis+, IMM Building, JCube, Plaza Singapura, Tampines Mall and Westgate.”

    He says construction for Funan is progressing well. “With less than two years to target opening, Funan has received strong leasing interest for its retail and office components.”

    For its fourth quarter, CMT recorded growth of 1.8 and 2.6 per cent in gross revenue and NPI respectively year on year. The increase was mainly because of higher occupancy for Bugis Junction and The Atrium@Orchard, partially offset by lower gross revenue from Bedok Mall because of lower rental rates and reduced occupancy.

    For the full year, CMT recorded S$682.4 million in gross revenue, down 1.1 per cent. This was mainly because of the closure of Funan mall for redevelopment, lower rental rates and the lower occupancy at Bedok Mall. This was partially offset by higher rental from IMM Building, JCube and Clarke Quay.

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  • CapitaLand sharpens China focus by selling 20 malls to Vanke

    CapitaLand sharpens China focus by selling 20 malls to Vanke

    CapitaLand China is about to sell 20 malls across China, following a year of record openings for the Singapore group.

    Through its wholly owned subsidiary CapitaLand Mall Asia, CapitaLand has signed agreements with unrelated parties to divest its share of interest in a group of companies that hold 20 retail assets with an agreed value of RMB8.3 billion (S$1.7 billion/US$1.2 billion).

     

     

    Each mall has an average gross floor area (GFA), excluding car park, of about 40,000sqm. They are spread across 19 cities, of which 14 are non-core cities in which CapitaLand has a single mall.

    Set for completion in the second quarter of this year, the transaction is expected to generate net proceeds of about S$660 million and a net gain of about $75 million for CapitaLand. The resultant loss of recurring income will be limited as the 20 malls account for about 4 and 7 per cent of CapitaLand’s respective total and China shopping mall portfolio valuation.

    The move follows CapitaLand’s divestment of CapitaMall Kunshan last month, and the formation of a JV between CapitaLand and CapitaLand Retail China Trust in November to acquire Rock Square, a 84,000sqm mall in Guangzhou.

    ‘Cusp of change’

    “China is sitting on the cusp of transformative changes to its retail industry, characterised by a burgeoning middle class and the rising popularity of omni-channel retailing,” says CapitaLand president/group CEO Lim Ming Yan. “CapitaLand is seizing this window of opportunity to reconstitute its mall portfolio with a sharper geographical focus.”

    He says that unlocking the value of mature assets for reinvestment into new growth opportunities is a hallmark of CapitaLand’s capital recycling strategy. “We will continue to invest in dominant assets in core Chinese city clusters, where we already enjoy a competitive advantage.”

    Lim sees China as an important core market for CapitaLand, with its competitive advantage in integrated developments acting as a key differentiator.

    CapitaLand last year opened a record 1 million square metres of retail space across eight developments in Singapore, China and Malaysia – its largest retail space offering in a single year. Of these, six are retail components of large-scale integrated developments in China, averaging about 130,000sqm. They are in fast-growing Chinese cities such as Hangzhou, Shanghai, Shenzhen, Suzhou and Wuhan.

    Post-divestment, CapitaLand’s mall network in China will be concentrated in 22 cities, compared to 36 before. It will comprise 491 malls, 45 of them in first- and second-tier cities. More than half are the retail component of integrated developments.

    CapitaLand’s largest retail presence is in Beijing and Shanghai, where it owns/manages eight malls each, followed by Chengdu with six and Wuhan with four. Following the acquisition of Rock Square, CapitaLand will have two malls in Guangzhou.

    The five core city clusters under CapitaLand’s China strategy are Beijing/Tianjin, Shanghai/Hangzhou/Ningbo/Suzhou, Guangzhou/Shenzhen, Chengdu/Chongqing/Xi’an, and Wuhan.

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  • CapitaLand marks 10th year in India with mall openings

    CapitaLand marks 10th year in India with mall openings

    CapitaLand India plans to divest six retail malls and its half-share in CapitaLand Retail Prestige Mall Management, which manages some of the properties.

    Singapore-headquartered CapitaLand has entered into definitive agreements to divest:

    * Its respective equity interests in six special-purpose vehicles (SPVs), which each hold a retail mall asset in the Indian cities of Bangalore, Mangalore, Hyderabad, Mysore, Cochin and Udaipur to Prestige Retail Ventures; and

    * Its 50 per cent equity interest in CapitaLand Retail Prestige Mall Management (CRPMM), which manages the properties in Bangalore, Mangalore and Hyderabad, to Prestige Estates Projects for an aggregate consideration of INR3.4 billion (about S$71.5 million or US$53 million), to be fully satisfied in cash and negotiated on a willing-buyer/willing-seller basis.

    When the transaction is completed, probably this quarter, the SPVs and CRPMM will no longer be subsidiaries or associates of CapitaLand.

    The SPVs and properties involved are:

    • Prestige Garden Constructions – The Forum Neighbourhood Mall and Oakwood Residences, Bangalore.
    • Prestige Mangalore Retail Ventures – The Forum Fiza Mall (pictured), Mangalore.
    • Babji Realtors – The Forum Sujana Mall, Hyderabad.
    • Prestige Mysore Retail Ventures – Forum Centre City (FKA Mall), Mysore.
    • Thomsun Realtors – Forum Cochin Mall, Cochin.
    • Flicker Projects – The Celebration Mall Udaipur, Udaipur.
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  • CapitaLand partners WeWork to cocreate office of the future at Funan integrated development

    CapitaLand partners WeWork to cocreate office of the future at Funan integrated development

    Funan, one of the most highly anticipated developments in Singapore opening in 4Q 2019, has signed its first office tenant. CapitaLand Mall Trust Management Limited (CMTML), the manager of CapitaLand Mall Trust which owns Funan, today announced that coworking space behemoth WeWork has leased 40,000 square feet (sq ft) of space in Funan. WeWork’s space will be located across two floors of Funan’s North Office Block – namely Level 4, which is the prime connector space linking the office blocks with Funan’s retail component, and Level 5.

    Mr Tony Tan, CEO of CMTML, said: “We envision Funan as an aspirational and experiential space that fosters collaboration among complementary partners, sparking inspiration and discovery for consumers. We are thus delighted to partner WeWork, one of the world’s leading innovators in shared office space, to cocreate an office of the future at Funan. Both Funan and WeWork share the same ethos of breaking new ground and building a community of like-minded individuals driven by passion to make a difference. WeWork’s coworking space will leverage Funan’s central location and harness its live-work-play paradigm to create a world-class collaborative workspace that fosters connections and nurtures ideas. It will cater to the new generation of professionals who yearn to work in a collaborative environment that gets them inspired, and unwind in a convenient location where they can shop, play sports, be entertained and enjoy a whole host of lifestyle activities under one roof.”

    Mr Tan added: “As a new-built space, WeWork’s facility at Funan offers plenty of scope and flexibility to implement purpose-built infrastructure and services for WeWork’s members. As a start, Funan will boast a smart office with facial recognition turnstiles and optional card-less entry into the office. WeWork community members will also have full access to the suite of innovations made available at Funan, including video-based smart carparking facilities, a 24-hour drive-through click-and-collect, 100% hands-free shopping service using robotics and app-based booking of all the facilities within the development.”

    Funan is located right in the heart of the Civic & Cultural District with excellent connectivity, including a direct underpass linking to City Hall MRT interchange station. As a new paradigm for live, work and play in Singapore’s city centre, Funan offers a synergistic combination of retail, office and serviced residence components that is designed to appeal to savvy consumers pursuing quality of life in a socially-conscious and creative environment. The Funan integrated development comprises a 500,000 sq ft mall of the future serving as a platform to inspire retail innovation; two Grade A office blocks that meet the needs of a variety of business, including established MNCs and coworking spaces for the mobile workforce; as well as The Ascott Limited’s lyf brand of co-living serviced residence designed for millennials.

    With community, connectivity and convenience at its core, Funan caters to the new breed of consumers who favour a collaborative environment and authentic experiences that reflect their passions and tastes. In support of the global car-lite movement, Funan is set to become Singapore’s first commercial building to allow cycling through the building with a dedicated indoor cycling path, complete with end-of-trip facilities for cycling enthusiasts, including bike shops, bike cafés, lockers and shower facilities. Funan will also boast the largest area set aside for urban agriculture in the CBD with a 5,300 sq ft urban farm and 6,900 sq ft edible yard, where the public can learn more about the origins of their food and “adopt a plot” to grow their own produce.

    Amenities available in Funan include a Golden Village cineplex, a best-in-class gym, futsal court, swimming pool and a 55-lane rock-climbing facility. Theatre goers will also delight in the performances programmed by Singapore’s leading professional theatre company W!ld Rice, which operates the dedicated 380-seat theatre in Funan.

  • CapitaLand and CRCT to jointly acquire 100% interest in company that owns Rock Square

    CapitaLand and CRCT to jointly acquire 100% interest in company that owns Rock Square

    CapitaLand and CapitaLand Retail China Trust (CRCT) have formed a joint venture to acquire all the shares in a company that owns an operational shopping mall, currently known as Rock Square, located in Haizhu District in
    Guangzhou. CRCT is the majority shareholder with a 51% stake in the joint venture, while CapitaLand owns the remaining 49%. This marks CapitaLand’s second mall and CRCT’s first in Guangzhou, the provincial capital of Guangdong Province in South China and one of four first-tier cities in China.

    Total purchase consideration payable is about RMB3,360.7 million (about S$688.9 million), which includes but is not limited to the company’s interests in Rock Square with an agreed value of RMB3,340.7 million (about $684.8 million). The transaction is expected to be completed by 1Q 2018.

    Rock Square is one of the largest malls in Haizhu District with a gross floor area (GFA) excluding car park of about 83,591 sq m. Surrounded by densely populated residential estates, the mall caters to about 800,000 residents from middle- and high-income households within a three-kilometre radius. The mall is directly connected to Shayuan metro station, which serves Line 8 that links Guangzhou’s eastern and western areas, and
    Guangfo Line that connects Guangzhou with Foshan. The planned extension of Line 8 and Guangfo Line by 2019 is expected to increase the mall’s population catchment.

    Mr Jason Leow, CEO of CapitaLand Mall Asia, said: “China is an important core market to CapitaLand. We continue to invest in our China shopping mall business under our ‘core city clusters, dominant assets’ strategy, which focuses on strengthening our presence in five city clusters with quality assets that command a dominant market position. Given Rock Square’s significant scale and strategic location with excellent transport links, the acquisition presents a rare opportunity to increase our exposure to the high-growth retail market in a first-tier city.

    As an operational mall with upside potential, the acquisition will also help CapitaLand to increase our recurring income base as we continue to expand our business.”

    Mr Leow added: “When completed, the acquisition will boost CapitaLand’s retail presence in Guangzhou, where we currently own and manage CapitaMall SKY+, which opened in 2015. By leveraging on our experienced team in Guangzhou to manage the new mall, we will be able to benefit from the network effect of an enlarged portfolio.”
    Mr Tan Tze Wooi, CEO of CapitaLand Retail China Trust Management Limited, said: “The acquisition marks CRCT’s strategic entry into another first-tier city after Beijing and Shanghai.

    It represents a progression of our portfolio reconstitution strategy, whereby capital from the sale of CapitaMall Anzhen is recycled into a multi-tenanted mall with a longer balance tenure and stronger growth potential. The addition of Rock Square serves to diversify CRCT’s tenant base and improve the quality of earnings by increasing our exposure to more varied and higher-yielding trade categories. Post-completion, the accretive acquisition will boost CRCT’s portfolio size by about 28% to approximately RMB15.1 billion (about S$3.1 billion).”

    Mr Tan added: “In view that leases accounting for over half of the mall’s total rent are up for renewal between 2018 and 2020, the timely acquisition will present us with a window of opportunity to achieve rental uplift through active tenant mix adjustments, unit reconfiguration and improvements to the layout. This is supported by the mall’s current mix of popular retailers, which serves as a strong base to attract more quality brands to enhance
    the overall shopping experience. Coupled with the cost synergies from working with our sponsor CapitaLand to manage the mall, we are confident of driving the growth of Rock Square and turning it into a significant contributor to our overall performance.”

    Opened in 2013, Rock Square is a five-storey shopping mall with three levels above ground and two basement levels. Positioned as a modern and trendy retail destination offering a wide range of fashion, F&B, children-oriented and entertainment options, the mall houses well-known international brands such as AEON, UNIQLO, ZARA and Victoria’s Secret. As at June 2017, the mall was 96.4% committed.

    The mall is located in Haizhu District, Guangzhou’s second most populous urban district that also ranks high in terms of disposable income per capita4. A popular residential area for Guangzhou’s new affluent class, Haizhu District is home to the Creative Industry Zone (where leading technology firms such as Tencent are based), the city’s landmark Canton Tower and top tertiary institution Sun Yat-sen University.

    Guangzhou is the most populous city of Guangdong Province with a population of 14 million. It is an important communications and transportation hub in South China with a flourishing high-tech industry. In 2016, Guangzhou’s GDP grew 8.2% year-on-year, outpacing the national average of 6.7%. In the same period, both disposable income per capita rose and total retail sales rose by 9.0%. These positive indicators are expected to see further growth support, as Guangzhou transforms into a major commercial centre in South China with a
    fast-evolving retail scene and an increased emphasis on driving domestic consumption.

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  • CapitaLand hits record with Suzhou Center Mall

    CapitaLand hits record with Suzhou Center Mall

    With the opening of its largest shopping centre yet, Suzhou Center Mall, Singapore retail-estate company CapitaLand has marked a record year of a million square metres of retail space.

    More than three times the size of Ion Orchard in Singapore, the mall is also the largest shopping centre in the Chinese city. It spans nearly 300,000sqm in gross floor area (GFA), excluding car park.

    More than 600 retail brands are housed within the mall, in the heart of the western CBD of Suzhou Industrial Park, next to the historic Jinji Lake. It is the centrepiece of the Suzhou Center integrated development that also comprises four grade-A office towers, two luxury residential towers and the W Suzhou hotel tower, which are all interconnected.

    With a total GFA of 1.13 million square metres served by a 1570m tunnel leading to its basement car park and directly linked to two metro lines, Suzhou Center was master developed by Suzhou Hengtai Holding Group, owned by the Suzhou Industrial Park.

    CapitaLand, through its wholly owned shopping business CapitaLand Mall Asia, is co-owner and co-developer for the mall and two 21-storey office towers.

    World’s largest

    Designed by multiple award-winning architectural firm Benoy, the seven-storey Suzhou Center Mall has an undulating roof that is the world’s largest free-form monocoque roof at more than 36,000sqm. Shaped like a pair of phoenix wings to symbolise Suzhou’s growth taking flight, the multi-coloured roof comprises 6947 pieces of uniquely shaped glass.

    Suzhou Center Mall also boasts 60,000sqm of greenery across terraces, rooftops and the landscaped cantilever bridges that extend from two ends of the mall to the lakefront. A 45m-wide, 25m-high water curtain is a feature of the mall’s facade facing Jinji Lake.

    The mall opened with more than 90 per cent lease commitment for its net lettable area of about 152,000sqm. Anchor tenants include more than 600 brands including Suzhou’s first CGV cinemas, its first Fanpekka children’s theme park, first indoor simulated gaming centre, an Olympic-size ice rink, a gourmet supermarket and a food court.
    Nearly a third of the mall’s offerings are new to Suzhou, including Forever 21 and Victoria’s Secret. H&M and Zara will run triplex stores in the mall, their biggest outlets in the city.

    Suzhou center mall

    CapitaLand says that with the opening of Suzhou Center Mall, 61 of its total portfolio of 69 owned and managed malls in China are up and running.

    CapitaLand CEO Lim Ming Yan says the mall’s opening caps a record year for the company. “Nearly 1 million square metres of retail GFA across eight developments came on line this year, marking our largest-ever retail offering in a single year.”

    CapitaLand Mall Asia CEO Jason Leow says that about 85 per cent of the group’s total assets contribute to recurring income, of which shopping malls and integrated developments form the bulk. “As we increase CapitaLand’s recurring income base with mall openings, we will also continue to enhance our retail scale and network through acquisitions and management contracts, as well as reconstitute our portfolio to achieve an optimal asset mix.”

  • Mixed quarter for CapitaLand Malaysia Mall Trust

    Mixed quarter for CapitaLand Malaysia Mall Trust

    In a third quarter of mixed results, CapitaLand Malaysia Mall Trust (CMMT) saw its net property income fall 2.2 per cent year on year to RM60.1 million (US$14.1 million).

    East Coast Mall and Gurney Plaza turned in stronger performances to partially mitigate lower contributions from the trust’s Klang Valley shopping malls.

    Cautious consumers and growing competition from new malls have affected Malaysia’s retail sector, says chairman David Wong of CapitaLand Malaysia Mall REIT Management (CMRM), which manages the trust.

    “Our Klang Valley malls continued to be affected by the increased supply of retail space in the vicinity,” says CMRM CEO Low Peck Chen.

    She says a reconfiguration of the basement level at Gurney Plaza to increase the F&B offering is expected to contribute to income from the fourth quarter.

    “At Tropicana City Mall, a Japanese restaurant was added to the standalone F&B cluster

    adjoining the office tower. Another restaurant will join the cluster next month to make a total
    of four F&B outlets, all of which have extended hours past midnight to better meet the needs of consumers.

    “Shoppers at The Mines will also find more shopping and entertainment choices on Level 4 following reconfiguration works.”

    Meanwhile, a rejuvenation of the 40-year-old Sungei Wang Plaza is expected to start soon.

    “During the quarter under review, we organised several family-oriented experiential marketing
    activities to enhance the shopping experience, which drew more visitors to our malls.”

  • CapitaLand links with Alibaba, Lazada Singapore

    CapitaLand links with Alibaba, Lazada Singapore

    CapitaLand is advancing its omni-channel strategy by forging an alliance with Lazada Singapore, and has also signed an agreement to manage Alibaba Shanghai Center, comprising four office towers and a retail podium.

    Its China project is the start of a strategic collaboration between the Singapore-based real estate group and Alibaba Group, Asia’s largest e-commerce company, to reinvent modern retail through the seamless integration of offline and online (O&O) channels.

    CapitaLand’s Singapore deal involves an agreement to launch an exclusive online mall on Lazada Singapore, which is part of Lazada Group, Southeast Asia’s largest e-commerce platform, now essentially controlled by Alibaba. The shop-in-shop on Lazada.sg will position CapitaLand as Singapore’s first omni-channel retail landlord connecting retailers to shoppers both offline and online, complemented by a world-first in-mall collection service for shoppers.

    “Even as new technologies disrupt traditional business models, real estate remains an important part of a holistic customer journey, as affirmed by leading digital players who are seeking to gain a foothold in the physical space,” says CapitaLand president/group CEO Lim Ming Yan.

    He says he foresees win-win outcomes for all parties as strategic alliances are forged to future-enable properties and support retailers in embracing an omni-channel business model.

    “The key to unlocking the next stage of growth lies in blending physical and digital channels to create a seamless O&O experience for the customer.

    “We will continue to leverage digital tools and partner disruptors to strengthen our customer engagement, embrace smart building technologies to uplift the quality of our built environment, and harness data to enhance customer experience at our properties.”

    Supports Smart Nation

    The Lazada deal supports the Smart Nation push to reinvent retail. CapitaLand will launch a shop-in-shop aggregating the offerings of retailers in its Singapore malls on Lazada.sg by the end of the year.

    Shoppers at the CapitaLand official store on Lazada.sg will have the option to collect their purchases in CapitaLand malls, and in so doing so will be rewarded with membership points in the CapitaStar loyalty program.

    Initially CapitaLand will roll out two unmanned click-and-collect lounges at Plaza Singapura and Bugis+ for shoppers to collect purchases or make returns. As well as collection lockers, the lounges will have fitting rooms and a product-testing bench.

    “As the owner and manager of Singapore’s largest network of shopping malls, we have embarked on creating a digital channel that supports our mall tenants in tapping the growth potential of e-commerce,” says CapitaLand Mall Asia CEO Jason Leow.

    By enabling shoppers to collect online purchases in its malls, last-mile delivery costs for retailers will be reduced in the long run.

    “Also, our retailers will enjoy comprehensive marketing support in the physical and digital space and get a leg-up in their e-commerce business.”

    Shoppers will not only have the option of click-and-collect, but benefit from free delivery and have 14 days to make returns, says Lazada Singapore CEO Alexis Lanternier.

    “This partnership is an important step for Lazada to expand our network of partners as we evolve the e-commerce ecosystem in Singapore.”

    Both CapitaLand and Lazada will help onboard retailers and promote the platform to shoppers, with the intention of rapidly scaling up the initiative in the next two years.

    ‘Bricks and clicks’

    Under its contract with Alibaba, CapitaLand will oversee the pre-opening and management of the shopping podium and one of the four office towers in Alibaba Shanghai Center, which has a total gross floor area (GFA), excluding car park, of about 80,000 sqm. The four-storey shopping podium – three levels above ground and one basement level – takes up about 20,000 sqm.

    Alibaba Shanghai Center is strategically located in the northern core of Shanghai’s Hongqiao CBD, less than 2km from Hongqiao Transportation Hub. Scheduled to open next year, the retail component serves working professionals and residents of the mid- and high-end housing zones nearby.

    Leow says the company and Alibaba will jointly explore the possibilities of combining “bricks with clicks”, starting with Alibaba Shanghai Center, and creating O&O experiences.

    Alibaba Group’s head of intelligent building, Wang Tao, says Shanghai is an important platform and the group’s headquarters there will serve as a strategic nerve centre for rolling out Alibaba’s New Retail strategy.

    “We believe our collaboration will chart new frontiers in integrating online, offline, logistics and data across a single value chain to meet the needs of consumers.”

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  • Challenges, but CapitaLand Mall Trust proves steady

    Challenges, but CapitaLand Mall Trust proves steady

    CapitaLand Mall Trust had net property income of S$117.5 million (US$86 million) for its second quarter to the end of last month – 1.2 per cent higher than the $116.1 million for the same period last year.

    “Notwithstanding the challenges in Singapore’s retail sector, the trust has produced yet another steady set of results,” says CEO Tony Tan of CapitaLand Mall Trust Management, which manages the trust.

    Its portfolio occupancy at June 30 was 98.6 per cent, outperforming the average market occupancy level, says Tan.

    During the quarter, a major asset-enhancement initiative was completed for Bukit Panjang Plaza, with the rooftop garden and level-four public library being expanded. Other improvements include new dual-file escalators and a skylight roof.

    At the end of April, Funan blazed a trail with the launch of its one-of-a-kind experiential show suite, a first for Singapore retail, says Tan. “Two months later, and with more than two years to go before its target opening, Funan’s retail component is already 30 per cent committed.”

    He says the decreases in gross revenue for the year’s first two quarters were mainly because of Funan as it closed in July last year for the redevelopment.

  • CapitaLand nabs three mall management contracts in China

    CapitaLand nabs three mall management contracts in China

    These expand the group’s mall footprint by another 115,000 sqm. CapitaLand Limited is accelerating its shopping mall network expansion through the recently-won management contracts with three new partnerships in China.

    According to the group, its subsidiary CapitaLand Mall Asia will be adding more than 115,000 square meters of gross floor area with these deals.

    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.

    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.

    “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 square metres within a year,” CapitaLand Mall Asia CEO Jason Leow said.

  • CapitaLand Vietnam opens The Oxygen Mall

    CapitaLand Vietnam opens The Oxygen Mall

    CapitaLand Vietnam has opened a shopping centre, The Oxygen Mall in Ho Chi Minh City’s District 2.

    Located at the base of the high-end residential development The Vista, The Oxygen includes three stories with over 8000 sqm retail space and is primarily targeted to residents.

    The mall tenants are mainly F&B operators, with a wide variety of cuisine on offer: “East meets West” fusion food as well as eateries such as Starbucks, Tous les Jours, Gaxeo, Shalom, Kogi Zip Korean BBQ and Genshai supermarket.

    The centre also includes an artistic co-working space called Toong on third floor, which spans more than 1000 sqm. Toong offers a conducive working environment to startups and small and medium enterprises for more than 300 members.

    “By harnessing the knowledge, expertise and experience accumulated from CapitaLand Group, The Oxygen will enhance the vibrancy of the shopping scene and experience in District 2 and surrounding areas,” says Chen Lian Pang, CEO of CapitaLand Vietnam.

    Besides the space for Vista residents, The Oxygen will also serve other activities such as garage sales, Sunday markets, birthday parties, charity events, and other festivals.

    CapitaLand said this week it plans to significantly increase its S$2.1 billion multi-asset class presence in Vietnam, including a possible Raffles City in Ho Chi Minh City.

  • CapitaLand inks contract to manage mall at new SingPost Centre

    CapitaLand inks contract to manage mall at new SingPost Centre

    CapitaLand, through its wholly owned shopping mall business, CapitaLand Mall Asia, has signed a contract to manage the upcoming mall at the new SingPost Centre.

    This is the third mall management contract that CapitaLand has inked in slightly over six months, after securing the first two in China, the comnpany said on Tuesday (March 28). With this contract, CapitaLand said its network in Singapore will increase to 20 shopping malls with a combined gross floor area (GFA), excluding car park, of about 14.2 million square feet (sq ft).

    Mr Jason Leow, CEO of CapitaLand Mall Asia, said, “The signing of our first third-party mall management contract in Singapore – also our third across Asia in quick succession – demonstrates the scalability of our asset-light expansion strategy to grow our assets under management. We continue to be on the lookout for suitable opportunities to enlarge our retail footprint through third-party management contracts, to complement our core strategy of developing, owning and managing malls in Asia.”

    SingPost Centre is located in the up-and-coming Paya Lebar Central, next to the Paya Lebar MRT interchange station. CapitaLand currently owns and manages three malls in the eastern part of Singapore, namely Tampines Mall, Bedok Mall and Jewel Changi Airport, which is scheduled to open in early 2019.

    CapitaLand will oversee the pre-opening and retail management for the five-storey SingPost Centre mall, which has 269,000 sq ft of GFA, excluding car park, and a net lettable area of about 175,000 sq ft.

    Targeted to open in the second half of this year, SingPost Centre will house the new General Post Office, which combines traditional counter service with technology-enabled innovations such as POPStations and eSAM machines over a space measuring 3,330 sq ft. The General Post Office will also have a heritage corner, where customers can enjoy a learning journey through SingPost’s 150 years of history.

    Other tenants at SingPost Centre include NTUC FairPrice, Golden Village, Kopitiam, other retail brands, family entertainment outlets and enrichment centres.

    CapitaLand announced last August it is embarking on enlarging its retail footprint through management contracts with the signing of an agreement to manage the retail component of Fortune Finance Center in Changsha, China. In January this year, CapitaLand signed another agreement to manage a mall in La Botanica township in Xi’an, China.

  • CapitaLand to manage SingPost Centre

    CapitaLand to manage SingPost Centre

    CapitaLand, through its wholly owned shopping-mall business CapitaLand Mall Asia, has signed its first third-party shopping centre-management contract in Singapore to run the new SingPost Centre.

    Described as a world-first, Singapore Post is currently building the 25,000 sqm shopping centre which will allow online and offline retailers to showcase their products, side by side.

    The SingPost mall marks the third management contract CapitaLand has inked in about six months, the other two being in China.

    With this contract, CapitaLand’s network in Singapore will increase to 20 malls with a combined gross floor area (GFA), excluding parking, of about 14.2 million sqft (1.3 million sqm).

    CapitaLand Mall Asia CEO Jason Leow says the signing of its first third-party mall management contract in Singapore – also its third across Asia in quick succession – shows the scalability of the group’s asset-light expansion strategy to grow assets under management.

    SingPost Centre is in the eastern part of Singapore, where CapitaLand owns and manages three malls – Tampines Mall in Tampines Regional Centre, Bedok Mall in the rejuvenated Bedok Town Centre and Jewel Changi Airport, scheduled to open in early 2019.

    Five-storey mall

    Under the contract, CapitaLand will oversee the pre-opening and retail management for the five-storey SingPost Centre mall, which has 269,000 sqft of GFA, excluding parking, and a net lettable area of about 175,000 sqft.

    “With CapitaLand as our mall manager, we will be able to optimise the returns from this property while we focus our attention on our core business of postal services and e-commerce logistics,” says SingPost covering group CEO Mervyn Lim.
    Targeted to open in the second half of this year, SingPost Centre will house the new General Post Office, which combines traditional counter service with technology-enabled innovations such as PopStations.

    Other tenants at SingPost Centre include Golden Village, Kopitiam, NTUC FairPrice, retail brands, family entertainment outlets and enrichment centres.

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  • CapitaLand’s retail REIT records 6.7% fall in 3Q 2016 DPU

    CapitaLand’s retail REIT records 6.7% fall in 3Q 2016 DPU

    CapitaLand Mall Trust has posted a DPU of 2.78 Singapore cents for its 3Q 2016, a year-on-year fall of 6.7% compared to the 2.98 cents achieved in the corresponding period of 2015.

    Gross revenue for the period improved by 4.9% to SGD170 million (USD121 million) while its net property income of SGD119.5 million represents an increase of 5.5% over the SGD113.3 million recorded in 3Q 2015.

    This was mainly due to a contribution of SGD14.5 million from Bedok Mall which was acquired in October 2015, higher rental revenue achieved for IMM Building, Tampines Mall, and Bukit Panjang Plaza after asset enhancements, and higher occupancy at Clarke Quay.

    However distributable income for 3Q 2016 was SGD98.4 million, 4.7% lower than 3Q 2015.

    The distributable income for 3Q 2015 included the release of SGD8.0 million taxable income retained in 1Q 2015, and excluding this release, the distributable income for 3Q 2016 would have been 3.3% higher year-on-year, said the Singapore-listed retail REIT.

    “Despite uncertainties in the macroeconomic environment and challenging retail conditions in Singapore, CapitaLand Mall Trust’s portfolio occupancy rate as at 30 September 2016 remained high at 98.6%”, said Wilson Tan, CEO of the REIT’s manager.

    “For the first nine months of 2016, the REIT also registered year-on-year growth of 2.9% and 1.2% in shopper traffic and tenants’ sales per square foot respectively”, he added.

    The REIT’s aggregate leverage as at 30 September 2016 was at 35.4%, up slightly from 35.3% in the previous quarter, while portfolio weighted average lease expiry (WALE) was at 2.0 years by gross rental income.

    Units of CapitaLand Mall Mall Trust finished the trading day about 0.5% lower from its previous close on the Singapore Exchange to end at SGD2.11.

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