CapitaLand Retail China Trust (CRCT) announced on 28 Nov 2017 their acquisition of Rock Square in Guangzhou for RMB 3,361m or S$688.9m.
The acquisition will be in conjunction with their parent company CapitaLand. CRCT will take a 51% majority stake in the joint venture while CapitaLand will take 49%.
One year after buying Galleria in Chengdu and just 4 months after selling CapitaMall Anzhen, CRCT is doing another deal.
Here’s a few things to know about the transaction.
[Also read: Review of CapitaLand REITs]
The Mall is in a strategic location in Tier 1 Guangzhou. According to their slides, Guangzhou had GDP growth of 8.2%, above the nation’s average of 6.7%.
Retail sales for consumer goods grew 9% in 2016 and the urban disposable income per capita grew 9% to RMB 50,941.
Guangzhou ranks 4th among China’s top 20 cities in terms of the number of high-income consumers …