SINGAPORE (Aug 31): CapitaLand Mall Asia Ltd, CapitaLand’s wholly owned shopping mall business, has signed a management contract to manage the retail component of the landmark Fortune Finance Center in Changsha, the provincial capital of Hunan in Central China.
This marks the beginning of CapitaLand’s enhanced asset-light strategy to enlarge its mall network through third-party management contracts to complement its core strategy of developing, owning and managing malls.
“By managing quality third-party malls for which we have a right of first refusal to acquire, we are also paving the way for future acquisitions,” says Jason Leow, CEO of CapitaLand Mall Asia. “Through third-party management contracts, we are able to take advantage of market opportunities to rapidly scale up our mall network in an asset-light manner.”
“With an enlarged number of malls, we can then benefit from the scale and network effect to boost our leasing efforts and enhance the effectiveness of our shopper loyalty programme in these cities we operate.” Leow says.
The scope of the contract with Chinese state-owned developer Changsha Pilot Investment Holdings Group Co, the owner and developer of Fortune Finance Center, covers asset planning, pre-opening and retail management for a total gross floor area of 95,000 sq m excluding car park.
Currently under construction, the mall is targeted to commence operations in end 2018.
Strategically located in Binjiang New Area, the new Central Business District (CBD) in Western Changsha, the Fortune Finance Center integrated development comprises a seven-storey shopping mall, a 328-metre-high super tower that is the tallest in Western Changsha, as well as a 258-metre tall Grade-A office building, a residential block and Changsha’s first JW Marriott luxury hotel.
The mall serves a population catchment of an estimated one million residents and working professionals within a 5km radius.
“Fortune Finance Center is the largest integrated development in Western Changsha. Binjiang New Area, where the project is located, is the first national-level development zone in Central China and is expected to play an important role in Hunan’s future economic transformation,” says Liu Jixiong, Chairman of Changsha Pilot Investment Holdings Group Co.
“With CapitaLand’s extensive retailer network and deep expertise in mall management, we are confident that our alliance with CapitaLand will help us to achieve a quality mall of international standards that will enhance the value of Fortune Finance Center,” Liu adds.
With this contract, CapitaLand doubles its presence in Changsha, where it currently owns and manages CapitaMall Yuhuating, a 62,000 sq m shopping mall in the Dongtang retail precinct in Yuhuating District, approximately 10km from Fortune Finance Center. — theedgemarkets.com.sg
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