CapitaMalls Asia (CMA), a wholly-owned subsidiary of Southeast Asia’s largest property developer CapitaLand, has announced that it has entered into an agreement to acquire a 66 percent stake in a prime shopping mall and office development in Shanghai for S$747.2 million (RMB3.86 billion), or around S$5,885 (RMB30,400) psm of GFA.
The site is located in Luwan district, at the junction of Madang Road and Xujiahui Road. It is directly connected to the existing Madang Road interchange station for two subway lines, which connects the site to the Lujiazui CBD area, to the World Expo site and to the southern part of Shanghai.
“Luwan District is one of the key commercial and residential areas in the Shanghai city centre. We will develop a landmark project comprising a vibrant shopping mall and a quality office tower on the site, transforming the immediate vicinity into a retail and commercial hub. Our development will be able to tap on a large catchment of about 1 million residents with high disposable incomes in the immediate vicinity,” said Mr. Lim Beng Chee, CEO of CMA.
“With this investment, CapitaMalls Asia continues to bolster our foothold in China and extend our leadership position as one of Asia’s largest developers, owners and managers of shopping malls. This shopping mall and office development will enjoy synergies with our four other shopping malls in the city, including Raffles City Shanghai which is a fashion hotspot for the modern and style-conscious Shanghainese. We are confident that this latest investment will add further value to our portfolio of assets and to our pipeline of growth,” he added.
The entire development is expected to be completed by 2015, and the shopping mall will be well positioned to serve the residents and working professionals within the vicinity.