CapitaRetail China Trust
CMT holds 122.7 million units in CapitaRetail China Trust (CRCT), which translate to an approximate 19.70% stake. The fair value of CMT's investment in CRCT represents 2.12% of CMT Group's total asset size as at 31 December 2009. Through its investment in CRCT, CMT's Unitholders are provided with an opportunity to enjoy the upside from China's growth potential without CMT's risk profile being significantly altered.
CRCT is the first China shopping mall REIT in Singapore. It was listed on the Singapore Exchange Securities Trading Limited on 8 December 2006. It is established with the objective of investing in a diversified portfolio of income-producing real estate used primarily for retail purposes and located primarily in the People's Republic of China, Hong Kong and Macau.
CRCT's current portfolio of eight shopping malls is located in five cities in China. The properties are Xizhimen Mall, Wangjing Mall, Jiulong Mall and Anzhen Mall in Beijing, Qibao Mall in Shanghai, Zhengzhou Mall in Zhengzhou, Henan Province, Saihan Mall in Huhhot, Inner Mongolia, and Xinwu Mall in Wuhu, Anhui Province. As at 31 December 2009, the total asset size of CRCT is approximately S$1.2 billion.
All the malls in the portfolio are positioned as one-stop family-oriented shopping, dining and entertainment destinations for the sizeable population catchment areas in which they are located, and are accessible via major transportation routes or access points. A significant portion of the properties' tenancies consists of major international and domestic retailers such as Wal-Mart, Carrefour and Beijing Hualian Group (BHG) under master leases or longterm leases, which provide unitholders with stable and sustainable returns. The anchor tenants are complemented by popular specialty brands such as Vero Moda, ZARA, Sephora, Watsons, KFC, Pizza Hut, BreadTalk and other fashion, services and food and beverage tenants.
CRCT has long-term growth potential from its right of first refusal arrangements to acquire assets held by CapitaRetail China Development Funds I and II and CapitaRetail China Incubator Fund, which are private retail property funds sponsored by CapitaLand Limited, as well as CapitaMalls Asia Limited, one of the largest listed shopping mall developers, owners and managers in China.
CRCT delivered a strong set of results in FY2009, where gross revenue and net property income were S$120.3 million and S$77.1 million, up 10.5% and 11.0% respectively from FY2008. The total income distributed to unitholders after retention of S$0.55 million for working capital and capital expenditure purposes was S$50.6 million, an increase of 10.4% over FY2008's distribution. The DPU for FY2009 was 8.14 cents, an increase of 8.1% over FY2008.
Left column:
Xizhimen Mall, Beijing
Wangjing Mall, Beiljing
Jiulong Mall, Beijing
Anzhen Mall, Beijing
Right column:
Qibao Mall, Shanghai
Zhengzhou Mall, Zhengzhou, Henan Province
Saihan Mall, Huhhot, Inner Mongolia
Xinwu Mall, Wuhu, Anhui Province