Property developer CapitaLand believes the China market presents the best prospects in the current challenging economic climate.
Speaking to shareholders at the company’s annual general meeting on Thursday, CEO Liew Mun Leong said real estate is all about economic growth. And CapitaLand is hopeful that Beijing’s US$585 billion stimulus package will help spur consumption there.
CapitaLand is also on track to open another 10 malls in China this year.
Despite the downturn, CapitaLand expects its shopping malls and serviced apartments to continue performing well in 2009, and for all its business sectors to remain above water.
In addition, CapitaLand said the group will also benefit from past investments as they come to fruition.
The developer added that its S$4.2 billion war chest will primarily be retained to maintain its solvency and credibility with lenders. But CapitaLand does not rule out spending some of this if good opportunities come along in the next few years.
Source : Channel NewsAsia – 23 Apr 2009