CapitaMalls Asia splurges $373m in Grand Canyon Mall acquisition

It has a total GFA of 70,000 sq m.

In a release, CapitaMalls Asia Limited announced today that it has won a tender to acquire Grand Canyon Mall in Beijing, China, from Capital Airport Real Estate Group Co., Ltd. The acquisition is subject to the approval of the Chinese government. 

CMA won the tender at a price of RMB1.74 billion (S$356.6 million / HK$2.18 billion). Including acquisition-related expenses, the total investment for the mall is expected to be about RMB1.82 billion (S$373.0 million / HK$2.28 billion), or about RMB26,000 (S$5,329 / HK$32,641) per square metre  based on total gross floor area, excluding car park.

Grand Canyon Mall is an operating mall strategically located along the South Third Ring West Road in Fengtai District, which has a population of about 2.2 million and is one of six core districts in Beijing.

Located in the south of the city, it is an up-and-coming region identified for accelerated economic growth by the Beijing government. In 2012, Fengtai District’s annual urban disposable income per capita grew 11.5% year-on-year to about RMB34,200 (S$7,010 / HK$42,935), ranking it the highest among the six districts. Total retail sales also increased  11.7% to reach about RMB83.0 billion (S$17.0 billion / HK$104.2 billion) in 2012.

Under the Second South Beijing Three-Year Plan2 from 2013 to 2015, Fengtai District is set to benefit from a RMB130.0 billion (S$26.6 billion / HK$163.2 billion) investment programme to further upgrade its industries and infrastructure. 

Grand Canyon Mall has a total GFA, excluding car park, of about 70,000 sq m, with 403 car park spaces.

A multi-tenanted mall, it is about 92.7% occupied and houses popular international and local brands such as Carrefour, Poly Cinema, H&M, Gap, Sephora and Watsons.