US retail property specialist Taubman Centers is to sell a 50 per cent stake in three of its shopping centres in China and Korea to funds managed by private equity company Blackstone Group. The deal, worth US$480-million, is expected to be settled later this year and will net Taubman about $315 million according to financial news reports. The company will maintain a share of up to 25 per cent in each property.
Post settlement, Taubman will be contracted for the ongoing management of the centres.
The centres are South Korea’s Starfield Hanam, and China’s CityOn Xi’an and CityOn Zhengzhou.
Taubman manages a 26 regional, super-regional and outlet shopping centres in the US and Asia, and has another property under development. CEO Robert S Taubman said the sale was part of a strategy of recycling capital for growth.
In the age of digitalization, shopping malls have evolved from a place for consumption to the “Third Space” in people’s everyday lives. Shopping malls provide a comfortable and relaxing environment with humanitarian touches by truly connecting with customers. CityOn.Xi’an has recently collaborated with the nationwide famous audio sharing platform Himalaya to build China’s first ‘Audio Library’ in a shopping mall, enabling customers to enjoy a literary cultural experience while shopping.
As a well-known audio sharing platform in China, Himalaya currently has 480,000,000 mobile users and its market value grew 1,000 times since its establishment five years ago. As a typical unicorn company, the Xi’an Municipal People’s Government signed a strategic agreement with Himalaya in 2018, in which the ‘Audio Library’ created by CityOn.Xi’an and Himalaya has brought the consumption culture in Xi’an to the next level.
CityOn.Xi’an creates a real-life library setting through its infrastructure development. Customers just need to scan the QR code upon entrance of the audio library, and they can gain access to Himalaya’s different free audio book channels created exclusively for CityOn.Xi’an customers. The wide variety of selection includes literature, education, food and beverage, travel, fiction, etc. allowing customers to enjoy extraordinary audio entertainment as they shop or dine.
In addition, the best-seller reads that are popular among young customers that would normally require payment such as ‘Ma Dong’s Career Plan B’ or ‘Kevin Tsoi’s 201st EQ Lesson’ are free to listen for customers in CityOn.Xi’an. To provide a better interactive experience, CityOn and Himalaya exclusively created ‘audio card’, where customers at CityOn.Xi’an can design and customize their own audio greeting cards to send blessings to their loved ones just through a scan of the QR code.
CityOn.Xi’an’s extensive collaboration extends beyond offline to online, where customers are offered a brand-new way to receive messages from the mall. CityOn.Xi’an utilizes Himalaya’s platform to create an exclusive radio channel for CityOn.Xian, enabling customers to receive messages, member benefits, brand details, and customer service information immediately. Customers can either use offline QR code scan or manual search on Himalaya APP to gain first hand information on the happenings of CityOn.Xi’an.
The breakthrough approach completely transforms communication between a shopping mall and customers, where message delivery is now easier and livelier.
CityOn.Xi’an’s General Manager Xu Jing Dong said, “CityOn.Xi’an has always been at the forefront of new retail and has achieved numerous firsts in the nation. For example, CityOn.Xi’an innovatively implemented APP technology in a wide variety of services, such as launching the world’s first offline experience store for DiDi, China’s first SF Express delivery customer service store, and the first to have a smart electric bike stop, motorcycle charging facility, and Ponycar flagship store in China’s north-west region.
These O2O collaborations have brought CityOn.Xi’an and customers closer together, successfully converting online traffic to offline footfall and achieved record-breaking performance in customer traffic and sales.
‘Audio Library’ represents CityOn.Xi’an’s mission of being customer-centric and innovative, striving to be the commercial landmark of Xi’an and the whole of China’s north-west region. The collaboration truly reflects CityOn.Xi’an’s commitment and effort in bringing outstanding retail experience to customers through partnerships with different third parties, and to set the benchmark of customer service in the industry.
A modern shopping experience is promised in north-west China’s Xi’an city with the opening next month of a seven-level shopping centre, anchored by a Wangfujing Department Store.
The joint development has been developed by Hong Kong-headquartered Taubman Asia, a subsidiary of Taubman Centers, and the Wangfujing Group.
“We have taken a disciplined approach to growth in Asia and are thrilled to see our first China project come to life,” says Taubman Asia president Rene Tremblay.
Opening on April 28, the 90,000 sqm CityOn Xi’an shopping centre is in the heart of Xi’an’s new CBD and administrative center. It will have a mix of domestic and international designer and lifestyle brands from fast fashion to accessible luxury.
It will also feature local, regional and international cuisine across all price-points and in both seated restaurants and quick-service formats, as well as child-friendly experiential, educational and entertainment offerings.
“There has been excellent tenant demand and we expect to well exceed 90 per cent
leasing at opening,” says Taubman Asia group VP for leasing Paul Wright. “The stellar line-up of brands shows great confidence in CityOn Xi’an.”
Tenants include:
Retail: Bershka, BJIL Moda, Candies, Coach, Forever 21, Gap, H&M, I Do, INXX, La Babite, La Chapelle Group, Ludao Ordinary Life, Massimo Dutti, Me&City, Monki, Muji, Nordic by Nature, Vero Moda, P+, Semir, Stradivarius, UR, Westlink, Yishion Classic, Zara and Zara Home.
F&B/entertainment/kids/lifestyle: Balabala, Cartoony World, Cousin Restaurant, Gymboree, Holiland, Impression of MaWei, Kids World, Kidsmoment, Ma La Kuai Le Ying, MusangKing, Nobleman Training Club, Open Life, Open Oven, Oscar International Cinemas, Pacific Coffee, PGL, Quan Zi/Jessie Wa/Brunch&Coffee, Romp n’Roll, Rong Li Ji, Skyland Food Court, Starbucks, Tanyu, Xi He Ya Yuan Peking Duck, Xu Ji Seafood.
Taubman Asia is a subsidiary of Taubman Centers, and the platform for the US mall company’s expansion into China and South Korea. Founded in 1950 with headquarters in Michigan, the parent company owns, manages and/or leases 23 regional shopping centres in the US and Asia.
Founded in Beijing in 1955, the Wangfujing Group is committed to transforming its traditional department store business into a modern retail group. Its sales network spans seven major economic zones in China with 46 large-scale retail stores in 28 cities, including department stores and shopping malls.
