The Carlyle Group announced a strategic partnership with SZITIC Commercial Property Co., one of the largest shopping mall developers and operators in China.
Carlyle is acquiring a 49% stake in Suzhou In-City Mall and Hangzhou Gudun In-City Mall, two regional shopping malls owned and operated by SZITIC Commercial Property.
Financial terms of the acquisition were not disclosed.
Suzhou In-City Mall, located between Suzhou Industrial Park and the old city center, has four above ground floors and one basement retail floor with an aggregate gross floor area of 136,000 square meters. Hangzhou Gudun In-City Mall, located in the northwest part of the Xihu District of Hangzhou, has four above ground floors and two basement floors for car parks with an aggregate gross floor area of 52,000 square meters.
Both properties, in operation for over three years, are one-stop regional malls integrating fashion and electronics with entertainment and food and beverage services. Their tenants include well-known brands such as Wal-Mart, Sephora and Starbucks.
"Rising household disposable income, continuing urbanization, changing demographics and government initiatives to promote domestic consumption will continue to benefit China’s retail sector," says Jason Lee, managing director and head of Carlyle Asia Real Estate.
Carlyle Asia Real Estate (CARE) was established in 2001 and primarily invests in value-add opportunities across all real estate sectors in Asia through its real estate private equity funds. CARE also invests in core assets on behalf of its separate accounts.
With local teams based in Hong Kong, Shanghai, Singapore and Tokyo, CARE has invested in aggregate over US$2.1 billion of equity in Asia. In China, CARE has made 14 investments with a total capitalization of US$ 2.5 billion.
Incorporated in 2003 and headquartered in Shenzhen, SZITIC Commercial Property Co. is one of the largest shopping mall developers and operators in China. It has developed a total gross floor area of more than four million square meters shopping malls in the past 10 years.