CapitaMalls Asia acquires stakes in 2 Shanghai properties

CapitaMalls Asia has acquired the remaining 50 per cent stakes in two properties in Shanghai for S$949.7 million.

The property developer has entered into conditional agreements whereby it will acquire the remaining 50 per cent stakes each in Minhang Plaza and Hongkou Plaza.

In a filing on SGX, CapitaMalls Asia said together with its associates, it will have full interests in the two integrated developments.

The acquisitions are subject to the relevant governmental approvals.

Mr Lim Beng Chee, CEO of CapitaMalls Asia, said: “These acquisitions will deepen our presence and leasing strength in Shanghai to capitalise on the expected growth in the retail and office sectors, and we have seen strong commitment from tenants for both malls.”

CapitaMalls Asia has six shopping malls in Shanghai, including Minhang Plaza and Hongkou Plaza.

CapitaMalls Asia currently owns a 15 per cent interest in Minhang Plaza through its 30 per cent stake in CapitaRetail China Incubator Fund, which currently owns 50.0 per cent of the development.

Following the acquisition, CapitaMalls Asia’s effective stake in Minhang Plaza will be increased to 65 per cent.

Minhang Plaza opened in June and currently has about 98 per cent committed leases.

The tenants in the mall include Tesco, CK Jeans and Häagen-Dazs.

CapitaMalls Asia currently owns a 22.5 per cent interest in Hongkou Plaza through its 45.0 per cent stake in CapitaMalls China Income Fund, which currently owns 50 per cent of the development.

Following the acquisition, CapitaMalls Asia’s effective stake in Hongkou Plaza will be 72.5 per cent.

Hongkou Plaza will be opening later this year, and currently has about 90.0 per cent committed leases.

Source : Channel NewsAsia – 18 Aug 2011

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