Categorized | International

Developer Plans $1 Billion Mall in China

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A major commercial retail real estate developer has plans to invest over one billion dollars in a new shopping mall in one of China’s secondary cities. The shopping mall will include a variety of retail outlets, as well as two office towers.

With their planned one billion dollar investment, CapitaMalls Asia Ltd. will join Suzhou Industrial Park as co-owners of the complex. It is part of their continued expansion into China, where they currently have nearly half of their total assets. The company hopes that China’s continued economic and sales growth will make their investment a highly profitable venture.

Construction of the retail center will take roughly four years, and will be over three million square-feet in size. The company decided on Suzhou for the mall, as the city has demonstrated tremendous growth in recent years, and is only thirty minutes away from Shanghai. CapitaMalls currently owns fifty-five total retail properties in China.

Demand in Chinese commercial real estate continues to be on the rise, and has increased by more than forty percent in the last year alone. Growth is expected to continue, despite measures taken by the Chinese government to limit overall real estate growth.

Many investors are looking to China’s secondary cities, such as Suzhou, as the prices in such cities are relatively lower than those found in prime cities. The overall profit margin is also far greater in the secondary cities, which makes them an ideal investment target for global investors. Demand continues to exceed supply in the commercial real estate market, as the economy in China is better than ever.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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