CapitaLand Ltd may expand its Raffles City brand in China by renaming two projects in Shanghai and the port city of Tianjin.
“If we can make some adjustments, we can rename them as Raffles City because they are very well located,” said Lim Ming Yan, CEO of CapitaLand’s unit Ascott Ltd.
CapitaLand, the biggest developer in Southeast Asia, has already invested S$3 billion ($2.1 billion) in five Raffles City developments in China, and a sixth project is currently underway in Shenzhen, said Mr. Lim. The developer may have ten office and retail integrated developments worldwide, he added.
The Tianjin and Shanghai projects that are being evaluated were acquired in January, as part of the $2.2-billion acquisition of the real estate assets of Overseas (International) Ltd, doubling CapitaLand’s holdings in China. CapitaLand looks to expand its China business to 45 percent of its entire operations in the following three to five years from the present 36 percent, said Mr. Lim.
The Asian economic rebound from last year’s recession has boosted demand for property in CapitaLand’s markets including Singapore and China. CapitaLand also focuses on growth in Vietnam, aiming to increase assets from the current 1.5 percent to around ten percent.
The Raffles City projects, which are generally around 200,000 sq m (2.15 million sq ft), comprise office and retail space and serviced apartments, said Mr. Lim. China properties under the Raffles City brand are open in Beijing and Shanghai and are in development in Ningbo, Hangzhou and Chengdu, according to the company’s website.
CapitaLand has around a 45 percent stake in five Raffles City projects in China, said Olivier Lim, chief financial officer of CapitaLand.
In November, CapitaLand raised S$2.8 billion by selling its shares in CapitaMalls Asia Ltd, marking the biggest IPO in Singapore since 1993. The developer also sold S$1.1 billion of seven-year convertible bonds in July last year to help finance new investments and refinance maturing debt.