Global alternative asset manager The Carlyle Group has confirmed a strategic partnership with China’s Szitic Commercial Property (SCP) to buy a 49 per cent stake in regional shopping malls Suzhou In-City Mall and Hangzhou Gudun In-City Mall.
The two malls are owned and operated by SCP, one of the largest shopping mall developers and operators in China. The investment was made by a vehicle advised by Carlyle’s Asia Real Estate group. Financial terms of the acquisition were not disclosed.
Both properties, in operation for over three years, are one-stop regional malls integrating fashion and electronics with entertainment and food and drinks services.
Liye Ding, Chairman and CEO of SCP, said, “The partnership with Carlyle will enable us to expedite our business development and expansion plans, as well as to enhance the diversity and quality of our tenant portfolio by offering differentiated products and services. Leveraging Carlyle’s strong retail industry expertise and global network, we will explore more value-added initiatives to boost competitiveness and to meet the changing consumer demands in China.”
Jason Lee, managing director and head of Carlyle Asia Real Estate, added, “Rising household disposable income, continuing urbanization, changing demographics and government initiatives to promote domestic consumption will continue to benefit China’s retail sector, supporting growth in both rent and capital value for well-operated retail properties like In-City shopping malls operated by SCP. We are confident in the prospect of China’s fast-growing retail sector, and are delighted to partner with SCP, an experienced and reputable retail operating partner in China.”
Carlyle Asia Real Estate was established in 2001 and invests through its real estate private equity funds as well as on behalf of its separate accounts. With local teams based in Hong Kong, Shanghai, Singapore and Tokyo, it has invested in aggregate over $2.1bn of equity in Asia. In China, CARE has made 14 investments with a total capitalization of $2.5bn.
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