CapitaMalls Asia to invest S$747.2mln in Shanghai mall and office development

The site in Luwan district will be well positioned to serve the affluent residents and working professionals.

CapitaMalls Asia Limited is pleased to announce on Monday that it has entered into an agreement to obtain an effective 66% investment in a prime shopping mall and office development in Shanghai, China.

Including land cost, the total development cost of the project is projected to be approximately RMB3.86 billion (S$747.2 million), or around RMB30,400 (S$5,885) per sq m of gross floor area (GFA).

The site is strategically located in Luwan district, at the junction of Xujiahui Road and Madang Road. It is directly connected to the existing Madang Road interchange station for two subway lines – Line 9, which connects the site to the Lujiazui central business district six stops away and the Xujiahui shopping stretch; and Line 13, which goes to the World Expo site and southern part of Shanghai. It is near Xintiandi, a key dining and entertainment area with a premier office component. The area is densely populated, with an estimated 1 million residents living in mid to high-end apartments within a three-kilometre radius, according to a CapitaLand report.

The entire development is expected to be completed by 2015. The shopping mall will be well positioned to serve the affluent residents as well as the working professionals in the office tower and the immediate vicinity.

Mr Lim Beng Chee, CEO of CapitaMalls Asia, said: “Luwan District is one of the key commercial and residential areas in the Shanghai city centre. We will develop a landmark project comprising a vibrant shopping mall and a quality office tower on the site, transforming the immediate vicinity into a retail and commercial hub. Our development will be able to tap on a large catchment of about 1 million residents with high disposable incomes in the immediate vicinity.”

Mr Lim added: “With this investment, CapitaMalls Asia continues to bolster our foothold in China and extend our leadership position as one of Asia’s largest developers, owners and managers of shopping malls. This shopping mall and office development will enjoy synergies with our four other shopping malls in the city, including Raffles City Shanghai which is a fashion hotspot for the modern and style-conscious Shanghainese. We are confident that this latest investment will add further value to our portfolio of assets and to our pipeline of growth.”

Including this development, CapitaMalls Asia will have five shopping malls in Shanghai. The others are Raffles City Shanghai and Qibao Mall (which are already operational), and Minhang Plaza and Hongkou Plaza (both scheduled to open by next year). CapitaMalls Asia now has 52 shopping malls in 34 cities in China, of which 36 are operational while the other 16 are under development.

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