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CapitaLand Limited
Annual Report 2015
Overview
Sustainability
Business
Review
Portfolio
Details
Corporate
Governance &
Transparency
CapitaLand Mall Asia
Financials &
Additional
Information
One of Asia’s largest mall developers,
owners and managers by total property
value and geographic reach
As at 31 December 2015, CapitaLand owns and manages
104 shopping malls across 54 cities in Singapore, China,
Malaysia, Japan and India, with a total property value of
approximately S$41.2 billion and total gross floor area
(GFA) of approximately 100.0 million square feet. Of these,
88 malls (2014: 86) are operational while 16 (2014: 19) are
under development.
CapitaLand’s malls continued to perform well in its core
markets of Singapore and China, posting increases in net
property income, tenants’ sales and shopper traffic.
Strengthening Leadership in Singapore
In Singapore, CapitaLand Mall Trust (CMT) strengthened its
position as Singapore’s largest real estate investment trust
(REIT) with the acquisition of Bedok Mall from CapitaLand
for S$783.1 million. In addition, to tap on Funan DigitaLife
Mall’s prime location, CMT will be redeveloping the shopping
mall into an integrated development that is set to play a big
part in the rejuvenation of the Civic District. Further, in a
move that unlocked value for its unitholders, CMT divested
Rivervale Mall to a private equity fund for S$190.5 million and
realised a gain of about S$72.7 million.
CapitaLand continued to improve its retail offerings to
ensure its malls remain relevant and attractive. In 2015,
ION Orchard added a 35-metre underground walkway
flanked by stores on its two sides. Named ION Orchard
Link, it serves as an extension of ION Orchard’s shopping
experience and provides shoppers with a second
underground link to access the mall.
Two other CapitaLand malls in Singapore completed asset
enhancement initiatives in the year. Tampines Mall now provides
an improved shopping experience with a new education hub
on Level 5 that houses well-known education retailers, a new
covered linkway to the Mass Rapid Transit (MRT) station and
a refreshed mall façade. Clarke Quay introduced new F&B
choices after completing its reconfiguration works at Block A.
Clarke Quay is currently carrying out additional works at
Block E as it prepares to welcome more exciting
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world’s top dance clubs. Plaza Singapura has also embarked
on interior rejuvenation works to enhance the shopping
experience and reinforce its position as the destination mall
for families and friends, centrally located on Orchard Road.
Executing Proactive Asset Management Overseas
In China, CapitaLand opened three new malls in three cities,
namely Tianjin International Trade Centre, CapitaMall 1818 in
Wuhan and CapitaMall SKY+ in Guangzhou. All three malls
opened with healthy committed occupancy rates.
In Malaysia, CapitaLand Malaysia Mall Trust (CMMT)
acquired Tropicana City Mall and Tropicana City Office
Tower in Petaling Jaya for RM540 million, bringing the
total number of malls in its portfolio to five. The addition
of this quality asset has strengthened CMMT’s network in
Malaysia and provides it with greater income diversification.
Over in Kuantan, CMMT unveiled the new look of East
Coast Mall following the completion of a RM60 million asset
enhancement initiative that built on the mall’s popularity as
a trendy lifestyle destination.
In Japan, CapitaMalls Japan Fund, in which CapitaLand owns
a 26.29% stake, divested Chitose Mall in Hokkaido, Japan.
Subsequently, CapitaLand acquired the remaining 73.71%
stake in Vivit Minami-Funabashi in Tokyo at an agreed property
price of JPY7 billion from CapitaMalls Japan Fund. The Fund
drew to a close following this disposal of its last property.
CapitaLand now has a portfolio of five shopping malls in three
cities in Japan. These are Olinas Mall, Vivit Minami-Funabashi
and La Park Mizue in Tokyo; Izumiya Hirakata in Osaka;
and Coop Kobe Nishinomiya-Higashi in Hyogo.
Looking Ahead
CapitaLand will focus on optimising its portfolio and
deepening its presence in key gateway cities to capitalise
on Asia’s consumption growth. CapitaLand will continue to
innovate and enhance its competitive edge by embracing
technology for productivity gains as well as to deliver a new
customer experience, enabling shoppers to enjoy retail in a
technology-enabled environment.
