CapitaLand Retail China Trust (CRCT), the first China shopping mall Real Estate Investment Trust (REIT) in Singapore, is set to acquire a shopping mall, currently known as Galleria in Chengdu, China for RMB1.5 billion.
When the transaction is completed, the acquisition will enlarge CRCT’s portfolio size by about 14% to RMB12,547 million (S$2,550.3 million).
Opened in 2010, the mall is strategically located in the Xinnan Tiandi retail precinct of Gaoxin District in the south of Chengdu, one of the most established shopping belts in the city.
It is home to about 100 Fortune 500 companies, including General Electric, IBM, Amazon, Microsoft and Intel. As at 31 May 2016, it is 100% committed.
Tony Tan, CEO of CRCTML, said: “The proposed acquisition will diversify CRCT’s income and strengthen the resilience of our portfolio to deliver sustainable growth.”
Tan added that proposed acquisition is aligned with CRCT’s investment strategy to expand its footprint by leveraging on its network of five existing malls in Chengdu and its sponsor’s strong presence in key Chinese cities.
This will be CRCT’s 11th mall in China and its first in Chengdu.