CapitaMalls Asia to co-develop biggest shopping mall in Suzhou, China

The seven-storey shopping mall, with a total gross floor area of about 250,000 sq m, will cater to upper middle and high-income shoppers.

CapitaMalls Asia Limited signed a co-operation agreement with Suzhou Industrial Park Jinji Lake Urban Development Co., Ltd yesterday to develop the largest shopping mall in Suzhou. Owned by the Suzhou Industrial Park government, SIPJUD is the master developer of the SIP Central Business District, known as the Suzhou Centre.

Under the agreement, CapitaMalls Asia and SIPJUD will jointly develop and own a shopping mall and two office towers on the prime site in Suzhou Centre. The development, with a total gross floor area of about 460,000 square metres, is in the heart of the western CBD of SIP, next to the renowned Jinji Lake and near the traditional city centre in Suzhou. The development will tap on the catchments of both the SIP (which has about 700,000 residents) and the traditional city centre. With its direct connectivity to two metro lines (line 1, which will be operational by next year, and the future line 6), the development will also be easily accessible by Suzhou’s 10.5 million residents.

Excluding car park spaces, the development will have a total GFA of about 310,000 sq m. The seven-storey shopping mall, with a total GFA of about 250,000 sq m, will cater to upper middle and high-income shoppers. The offerings will include luxury brands, high-street fashion brands and entertainment for the family, and a gourmet supermarket. The mall will also house an Olympic-size ice rink and a cineplex. The two Grade A office towers, with a total GFA of about 60,000 sq m, will offer a first-class international business work environment.

The total development cost of the project is expected to be about RMB6,740 million (S$1,371 million / HK$8,247 million). Based on its effective stake of 50% in the joint venture with SIPJUD, CapitaMalls Asia’s share of the total development cost is about RMB3,370 million (S$686 million / HK$4,124 million).