CapitaLand buys Chinese malls

CapitaLand buys Chinese malls

SINGAPORE: CapitaLand Ltd, Southeast Asia's largest property firm, said on Thursday it is investing S$196 million (US$120 million) in a portfolio of Chinese shopping malls.

The Singapore company will control a 51 percent stake in six firms that will develop and own a chain of Chinese retail malls anchored by Wal-Mart, it said in a statement.

It is signing a joint venture deal with China's state-owned Shenzhen International Trust & Investment Co. Ltd, or Szitic, for the malls.

"In the longer term, CapitaLand envisages that these properties could form a portfolio for a China retail property fund with listing potential," the company said.

A Szitic unit, which owns a 35 percent share in Wal-Mart operations in China, will hold the remaining 49 percent stake in the development project. -- DPA