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CapitaLand signs MOU to explore investing in Wuhan integrated development
CAPITALAND on Thursday signed a memorandum of understanding (MOU) with the district government of Wuchang, one of three key areas of Wuhan in Hubei Province, to explore working with it to develop a prime site in Wuchang.
The MOU set out the general principles of collaboration between both sides. CapitaLand said that the potential scale of the proposed integrated development is expected to surpass all CapitaLand's existing properties in central China.
The MOU is not legally binding. Both parties will further negotiate for the detailed terms of the cooperation if and when they are entering into definitive agreements, CapitaLand said.
Lim Ming Yan, president and group CEO of CapitaLand, said: "In China, we are focused on deepening our presence in core city clusters where we can leverage our existing operations to grow faster.
"As the major transport and commercial hub in central China with strong economic fundamentals, Wuhan is a high-growth city that is set to benefit further from China's Belt and Road Initiative.
"The city's rapid urbanisation has created a high demand for quality real estate products and services, particularly integrated developments."
To date, the group owns and manages 23 integrated developments with over 6.2 million sq m of gross floor area in China's first and second-tier cities, making CapitaLand the foreign developer in China with the largest portfolio of integrated developments.
Last year, CapitaLand marked the successful opening of six integrated developments - Raffles City Changning in Shanghai; Raffles City Shenzhen; Raffles City Hangzhou; Capital Square in Shanghai; Suzhou Center; and CapitaMall Westgate in Wuhan.