CapitaLand inks retail JV with Changsa Pilot Investment

The contract involves a 95,000 sqm mall in China.

Marking the beginning of its enhanced asset-light strategy to enlarge its mall network through third-party management contracts, Singapore's CapitaLand ventured into a deal with Changsha Pilot Investment Holdings Group to manage the retail component of the landmark Fortune Finance Center in Changsha, china.

The scope of the contract covers asset planning, pre-opening and retail management for the said gross floor area that spans seven levels, two of which are basement floors. The mall is to commence its operations by the end of 2018.

The move was initiated by its wholly-owned shopping mall business, CapitaLand Mall Asia Limited.

According to CapitaLand Mall Asia CEO Jason Leow, the third-party management contract model enables the business to grow with the asset through proactive asset management and value creation.

"It is part of our asset-light expansion strategy – which also encompasses our established capital recycling model – to grow our assets under management, and complements our core business strategy of developing, owning and managing a diversified portfolio of shopping malls in Asia," he said.

He explained that through third-party management contracts, the company is able to take advantage of market opportunities to rapidly scale up its mall network in an asset-light manner.

"With an enlarged number of malls, we can then benefit from the scale and network effect to boost our leasing efforts and enhance the effectiveness of our shopper loyalty programme in these cities we operate,” he said.