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For immediate release 25 October 2011 NEWS RELEASE
CapitaMalls Asia and SIPJUD sign agreement to develop largest shopping mall in Suzhou Renowned architectural firm Benoy appointed to design the development
Singapore and Hong Kong, 25 October 2011 – CapitaMalls Asia Limited (SGX: JS8 and HKEx: 6813) signed a co-operation agreement with Suzhou Industrial Park Jinji Lake Urban Development Co., Ltd (“SIPJUD”) yesterday to develop the largest shopping mall in Suzhou. Owned by the Suzhou Industrial Park (“SIP”) government, SIPJUD is the master developer of the SIP Central Business District (“CBD”), known as the Suzhou Centre.
The agreement was signed by Mr Lim Beng Chee, CEO of CapitaMalls Asia; and Mr Xu Guoping, President of SIPJUD during the 5 th Singapore-Jiangsu Co-operation Council (“SJCC”) conference in Singapore. The signing was witnessed by SJCC co-chairmen Mr Heng Swee Keat, Singapore’s Minister for Education; and Mr Li Xueyong, Governor of Jiangsu Province in China.
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 (“GFA”) of about 460,000 square metres (“sq m”), 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 1 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.
Award-winning architectural firm Benoy has been appointed to design the development. Please refer to the Annex for an artist’s impression of the development.
Mr Lim said, “We are excited about this development in Suzhou, our first in the city. Suzhou is the second-largest industrial city in China after Shanghai, and its retail sales have grown faster than the national average. This development deepens CapitaMalls Asia’s presence in East China to 12 malls and in China to 55. We have a good and experienced partner in SIPJUD as they are the master developer of the Suzhou Centre, and they know the area very well. We are confident that under our partnership, this development will become a landmark shopping and dining destination for the residents of Suzhou and East China.”
Mr Xu added, “We are pleased to partner CapitaMalls Asia on this project as we have a shared vision of developing this project into the largest and best shopping mall on this prime site in Suzhou. Leveraging on our respective resources and strengths, we seek to continue the excellent innovative and co-operative spirit between China and Singapore. Beyond developing this site into a key shopping area in Suzhou, it is our aim to make it one of East China’s best and largest integrated shopping malls.”
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).
About CapitaMalls Asia ( www.capitamallsasia.com ) CapitaMalls Asia Limited is one of the largest listed shopping mall developers, owners and managers in Asia by total property value of assets and geographic reach. CapitaMalls Asia has an integrated shopping mall business model encompassing retail real estate investment, development, mall operations, asset management and fund management capabilities. It has interests in and manages a pan-Asian portfolio of 96 shopping malls across 51 cities in the five countries of Singapore, China, Malaysia, Japan and India, with a total property value of approximately S$26.5 billion and a total GFA of approximately 78.9 million sq ft.
Shopping malls in the portfolio include ION Orchard and Plaza Singapura – which are located in one of the world’s most famous shopping streets, Orchard Road – Raffles City Singapore and Clarke Quay in Singapore. Our landmark shopping malls in China are CapitaMall Xizhimen and CapitaMall Wangjing in Beijing; Raffles City Beijing and Raffles City Shanghai. The portfolio also includes Gurney Plaza in Penang, Malaysia; Vivit Square in Tokyo, Japan; as well as Forum Value Mall in Bangalore, India.
CapitaMalls Asia’s principal business strategy is to invest in, develop and manage a diversified portfolio of real estate used primarily for retail purposes in Asia, and to strengthen its market position as a leading developer, owner and manager of shopping malls in Asia.
Issued by: CapitaMalls Asia Limited (Co. Regn.: 200413169H) Date: 25 October 2011
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For more information, please contact: Analyst Media Caroline Fong Lim Seng Jin Head, Investor Relations Head, Corporate Communications and Marketing Tel: +65 6826 5856 Tel: +65 6826 5778 Email: [email protected] Email: [email protected]
As at the date of this news release, the board of directors of the Company comprises Mr Liew Mun Leong (Chairman and non-executive director), Mr Lim Beng Chee as the executive director; Ms Chua Kheng Yeng Jennie and Mr Lim Tse Ghow Olivier as non-executive directors; and Mr Sunil Tissa Amarasuriya, Tan Sri Amirsham A Aziz, Dr Loo Choon Yong, Mrs Arfat Pannir Selvam, Professor Tan Kong Yam and Mr Yap Chee Keong as independent non-executive directors.
The Company’s initial public offering in connection with its listing on the SGX-ST in November 2009 was sponsored by J.P. Morgan (S.E.A.) Limited and DBS Bank Ltd.
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Annex: Artist’s Impression of the CapitaMalls Asia-SIPJUD Suzhou Centre development
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