CAPITALAND Mall Asia Limited, the wholly owned shopping mall business of property group CapitaLand, has signed its first third-party management contract to manage the retail component of a China mall.
The contract was signed with Changsha Pilot Investment Holdings Group to manage the retail section of Fortune Finance Center, an integrated development in Changsha, the provincial capital of Hunan province in central China.
"This marks the beginning of CapitaLand's enhanced asset-light strategy to enlarge its mall network through third-party management contracts to complement its core strategy of developing, owning and managing malls," CapitaLand said in a release.
The contract covers asset planning, pre-opening and retail management for a total gross floor area, excluding car park, of 95,000 square metres. The area of coverage spans seven levels, with five levels above ground and two basement levels. Currently under construction, the mall is targeted to commence operations in end-2018.
Jason Leow, CEO of CapitaLand Mall Asia, said that the group can rapidly scale up its mall network through these third-party contracts. "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."
CapitaLand last traded at S$3.07.