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SINGAPORE-LISTED property investor Treasury China Trust plans to invest more than one billion yuan (RM466.25 million) in at least three shopping arcades on the mainland as it positions itself to take advantage of the growing wealth of consumers there.
On its acquisition list are shopping centres in Shanghai, Qingdao in the north and Xian in the west — a deliberate policy of geographical diversification, according to TCT chief executive Richard David.
The trust had already agreed to buy a retail property in the heart of Shanghai's shopping district for 575 million yuan, he said, but declined to identify the property. "Shanghai remains a very strong retailing environment and this acquisition, which will focus on high-end luxury goods, will complement TCT's existing Shanghai-based commercial real estate portfolio."
The trust already owns a 60,000 square metre city-centre mall in Shanghai, which is being expanded to more than 100,000 square metres. It also agreed to buy a 55% stake in a retail property in Qingdao's Laoshan district for 476.85 million yuan. The Central Avenue Mall comprises a mall with gross floor area of 43,463 square metres and an occupancy rate of 98%, and three adjoining cleared sites zoned for retail development which can provide a further 170,500 square metres of potential gross floor area. The additional land is expected to be developed as three separate projects by 2015.
The two planned investments will be partially funded by a recent private share placement that raised gross proceeds of S$26.72 million (RM63.68 million), bank borrowing and an issue of convertible bonds to an Asian-based investor.
TCT will unveil in the first half of next year details of its plans to invest in a project in Xian.
David said the trust, which focuses on Chinese commercial real estate, is eyeing acquisitions in second-tier cities with strong economic growth to tap the rising purchasing power of consumers.
The expansion comes as an increasing number of local and international companies have been eyeing the mainland's retail property market. Grosvenor Vega China Retail Fund, which is partly managed by London-based Grosvenor Fund Management, last month acquired a 1.7 billion yuan retail mall in Shanghai.
Mainland retail sales grew to 1.39 trillion yuan in November, up 18.7% from a year earlier, according to the National Bureau of Statistics. Retail sales of consumer goods rose 18.6% to 1.23 trillion yuan. Retail sales in urban areas grew 19% to 1.2 trillion yuan last month, while those in rural areas increased 17% to 186.5 billion yuan.
David said TCT, which has been in China for 12 years, has an existing property portfolio of 300,000 square metres and another 300,000 square metres under development. — SCMP
On its acquisition list are shopping centres in Shanghai, Qingdao in the north and Xian in the west — a deliberate policy of geographical diversification, according to TCT chief executive Richard David.
The trust had already agreed to buy a retail property in the heart of Shanghai's shopping district for 575 million yuan, he said, but declined to identify the property. "Shanghai remains a very strong retailing environment and this acquisition, which will focus on high-end luxury goods, will complement TCT's existing Shanghai-based commercial real estate portfolio."
The trust already owns a 60,000 square metre city-centre mall in Shanghai, which is being expanded to more than 100,000 square metres. It also agreed to buy a 55% stake in a retail property in Qingdao's Laoshan district for 476.85 million yuan. The Central Avenue Mall comprises a mall with gross floor area of 43,463 square metres and an occupancy rate of 98%, and three adjoining cleared sites zoned for retail development which can provide a further 170,500 square metres of potential gross floor area. The additional land is expected to be developed as three separate projects by 2015.
The two planned investments will be partially funded by a recent private share placement that raised gross proceeds of S$26.72 million (RM63.68 million), bank borrowing and an issue of convertible bonds to an Asian-based investor.
TCT will unveil in the first half of next year details of its plans to invest in a project in Xian.
David said the trust, which focuses on Chinese commercial real estate, is eyeing acquisitions in second-tier cities with strong economic growth to tap the rising purchasing power of consumers.
The expansion comes as an increasing number of local and international companies have been eyeing the mainland's retail property market. Grosvenor Vega China Retail Fund, which is partly managed by London-based Grosvenor Fund Management, last month acquired a 1.7 billion yuan retail mall in Shanghai.
Mainland retail sales grew to 1.39 trillion yuan in November, up 18.7% from a year earlier, according to the National Bureau of Statistics. Retail sales of consumer goods rose 18.6% to 1.23 trillion yuan. Retail sales in urban areas grew 19% to 1.2 trillion yuan last month, while those in rural areas increased 17% to 186.5 billion yuan.
David said TCT, which has been in China for 12 years, has an existing property portfolio of 300,000 square metres and another 300,000 square metres under development. — SCMP
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