Monday, July 30, 2012
CMA: announces that it is developing its first shopping mall in the New Urban Centre (NUC) in Qingdao, China. CMA will acq the site from a unit of Vanke, and Qingdao Shuangshan, a local enterprise mainly engaged in commodity trading, small scale warehousing and agri mart mgt. CMA plans to develop a 6-storey shopping mall with total gfa of 89.7k sm (excl a carpark with 900 car park spaces). The mall is expected to be completed in 2015, and will the first mall in the NUC, to serve a population catchment of 550k residents within a 5km radius. Qingdao’s first subway line M3, will be operational in 2014, and run through NUC and be linked to the mall’s basement. Total devt cost is estimated at Rmb 1.46b, or Rmb 16,235 psm of gfa. Separately, CMA also announces that it has acquired Olinas Mall in Tokyo for ¥22.8b (S$367.3m), or S$964 psf NLA, from Invesco Global Real Estate. Completed in 2006, Olinas Mall is one of the biggest and newest malls in Kinshicho, one of the biggest commercial areas in eastern Tokyo. Olinas Mall is part of a large integrated devt and is connected to a residential tower and an office tower. It has total gfa of ~583k sf, with total car parking capacity of 853 spaces. It is multi tenanted and currently at 100% occupancy. Mgt believes the current net property income yield of the mall is in excess of 6% and has the potential to be further enhanced through tenancy remix and pro-active mall mgt. CMA trades at 1x P/B.