CapitaMalls Asia (CMA) has purchased the Chengdu development from CapitaRetail China Development Fund II (CRCDF II) for 554.2 million yuan or $114 million.
The Chengdu development is comprised of residential, office and retail components.
The acquisition was made through the purchase of a 100 percent stake in Growing State Holdings Limited (GSHL), a HK-based investment holding firm whose China unit is overseeing the integrated project.
Among other factors, the $114 million cash consideration took into account the $9.5-million net tangible assets of GSHL as of January 31, and the shareholder’s loan of around $92.5 million from CRCDF II to GSHL.
The estimated total expenditure of CMA for the project, including a land cost of 305 million yuan and fitting-out and construction costs, was around 1.79 billion yuan. This works out to around 8,866 yuan or $1,823 per sq m of gross floor area (GFA).
When completed, the said project will have a total GFA of about 201,813 sq m and 1,348 car park lots. It will include a shopping mall of about 133,571 sq m GFA, and office and residential components with a GFA of about 22,820 sq m and 33,246 sq m, respectively.
The integrated development is located in Chengdu’s Gao Xin district, at the core of the upcoming South Business District (SBD).
Liew Mun Leong, chairman of CapitaMalls Asia, said: “Our integrated development located right in the heart of the South Business District, will benefit from the demand in this new catchments area for quality retail, residential and office real estate.”
Lim Beng Chee, the company’s CEO, also added: “This is a win-win deal for both CapitaMalls Asia and CapitaRetail China Development Fund II. The fund is already fully committed, and CapitaMalls Asia will be able to quickly ramp up development and capitalise on the potential of the site as all the development approvals have already been obtained.”
“Our acquisitions of Meili Mall in Chengdu and this integrated development will increase our presence and exposure in China, which we target to account for 40 percent of the total value of our properties.”