The Singapore-based retail developer said that with a strongly profitable position, it expects second-half earnings to surpass the first.
China is proving to be a lucrative market for CapitaMalls Asia (CMA) which recently reported that it is maintaining a profitable position in the country. The Singapore-based developer said that it expects core earnings for the second half of the year to exceed that of the first.
The developer said that it has so far managed to avoid the worst of the economic slowdowns and is careful to tenant its shopping malls with basic-needs outlets.
CMA's Central Executive Officer Lim Beng Chee said, "No matter how bad the economy was, I think basic shopping needs to be done. All our malls in China, you won't see a Louis Vuitton or a Gucci. It's all basic brands. So if you look at this, despite all these crisis, I think we are confident that our numbers will be sustainable."
For Q2 2012, CMA posted a 40.7% increase in profit to SGD 232 million. This was derived from its retail properties across 36 cities in China. With the completion of 15 more new malls, CMA will come to own and operate 58 shopping centres in the country.
Lim added that the company plans to fund further acquisitions with the CapitaMalls China Development Fund III, a new USD 1 billion development fund.
"Beijing has 20 million people. Singapore has five million. We have 19 shopping malls here. In Beijing, we only have nine. So I think with the people we have trained, we should be able to do more in such markets. These are only two core first tier cities. We don't have a presence in Guangzhou, Shenzhen. We have five in Chengdu. Three in Chongqing. All these cities have more than 10 million people."
For Singapore, CMA targets to have 19 malls by 2014. In September, the Star Vista Mall, located next to Buona Vista MRT, will be launched. Following on, CMA will open Bedok Mall by the end of next year.
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