Singapore-listed real estate investor Treasury China Trust (TCT) intends to invest over one billion yuan in at least three mainland shopping arcades to capitalise on the growing wealth of consumers in China.

The company plans to acquire shopping centres in Xian in the west and in Shanghai, Qingdao in the north, said Richard David, chief executive of TCT.

TCT had already agreed to acquire a retail property located at the heart of the shopping district of Shanghai for 575 million yuan, he said.

“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,” said Mr. David.

TCT already owns a 60,000 sq m city-centre mall in Shanghai, which is being expanded to over 100,000 sq m. The trust also agreed to acquire a 55 percent stake in a retail property in Laoshan district in Qingdao for 476.85 million yuan.

The two planned investments will be partially financed by a recent private share placement that raised S$26.72 million in gross proceeds, an issue of convertible bonds to an Asian investor and bank borrowing.

The trust, which focuses on Chinese commercial property, is looking at acquisitions in second-tier cities with strong economic growth to take advantage of the growing purchasing power of consumers, said Mr. David.

The expansion comes as a growing number of local and international firms have been eyeing the retail real estate market on the mainland. In November, Grosvenor Vega China Retail Fund bought a retail mall in Shanghai for 1.7 billion yuan.

TCT has a current portfolio of 300,000 sq m and another 300,000 sq m is under development, said Mr. David.