CA PITAMALLS ASIA

$114m purchase in Chengdu

 

Millet Enriquez

emelita@mediacorp.com.sg

SINGAPORE

The company said yesterday that it has agreed with CapitaRetail China Development Fund II (CRCDF II) to buy the integrated development for 554.2 million yuan ($114 million).

Located near a completed metro train station in Chengdu’s Gao Xin district, the integrated project consists of retail, residential and office components.

CapitaMalls Asia estimates total development cost at 1.79 billion yuan, including land cost of 305.0 million yuan and construction and fitting-out costs.

When completed, it will have a total gross floor area of 201,813 sq m. C u r r e n t l y, t h e p r o j e c t ’ s r e t a i l component (Tianfu Mall) is in the early stages of development by CRCDF II and is targeted to open by end-2013.

The shopping mall will consist of seven storeys of retail space and a rooftop garden. Mr Liew Mun Leong, chairman of CapitaMalls Asia, said the integrated development will benefit from Chengdu’s upcoming business district, as private sector and multinational companies are expected to set up office there.

Mr Lim Beng Chee, chief executive officer of CapitaMalls Asia, also sees the deal as a win-win situation for both companies.

“Our acquisitions of Meili Mall in Chengdu and this integrated development will increase our presence and exposur in China, which we target to account for 40 per cent of the total value of our properties,” he said.