CapitaMalls Asia Limitedcapitamallsasia.listedcompany.com/newsroom/... · governmental and public...

CapitaMalls Asia to Develop Suzhou’s Largest and Best-located Shopping Mall *Sep 2011*

Singapore • China • Malaysia • Japan • India

CapitaMalls Asia to Develop Suzhou’s Largest

and Best-located Shopping Mall

29 September 2011

CapitaMalls Asia Limited

Asia’s Leading Mall

Developer, Owner and Manager

CapitaMalls Asia to Develop Suzhou’s Largest and Best-located Shopping Mall *Sep 2011*2

This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. Actualfuture performance, outcomes and results may differ materially from those expressed in forward-looking statements asa result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (withoutlimitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability,competition from other developments or companies, shifts in expected levels of occupancy rate, property rentalincome, charge out collections, changes in operating expenses (including employee wages, benefits and training costs),governmental and public policy changes and the continued availability of financing in the amounts and the termsnecessary to support future business. You are cautioned not to place undue reliance on these forward-lookingstatements, which are based on the current view of management on future events.The information contained in this presentation has not been independently verified. No representation or warrantyexpressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness orcorrectness of the information or opinions contained in this presentation. Neither CapitaMalls Asia (“CMA”) or any ofits affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any losshowsoever arising, whether directly or indirectly, from any use, reliance or distribution of this presentation or itscontents or otherwise arising in connection with this presentation.The past performance of CMA is not indicative of the future performance of CMA.

The value of shares in CMA (“Shares”) and the income derived from them may fall as well as rise. Shares are notobligations of, deposits in, or guaranteed by, CMA or any of its affiliates. An investment in Shares is subject toinvestment risks, including the possible loss of the principal amount invested.

This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribefor Shares.

Disclaimer


• Project Highlights

• Suzhou Information and Site Details

• Positioning of Mall

• Operational Malls in China by Net Asset

Value

• Appendix

Outline

3


Project Highlights

4


Project Highlights

• Largest and best-located shopping mall in Suzhou

• Strong population catchment of approximately 700,000 in Suzhou Industrial Park (SIP)

• Close to mature population catchment in the traditional city centre

• GDP per Capita of SIP is more than 2.5X that of Shanghai

• Located above metro Line 1 (operational in 2012) and Line 6

• Capitalising on our strength and deepening our presence in East China (total 12 malls)

• Total development cost of RMB 6.74 billion (~RMB 22,000 psm GFA)

5


Bird’s Eye View of Suzhou Centre

Artist Impression of Project

6

Subject Site


Site Location (Cont’d)

Subject Site

7


Site Location (Cont’d)

A B

C


Overall

A prime development comprising a shopping mall and two 20-

storey office towers.

(CMA has an effective stake of 50%)

Site area

(approximate)65,100 sq m

Total GFA

(excluding carpark)

Retail: 250,000 sq m

Office: 60,000 sq m (2 blocks of 20 storeys each)

No. of Carpark

SpacesAbout 3,000

Estimated total

development cost

(100% basis)

RMB 6.74 billion (S$1,275 million)

Cost per sq m ~RMB 22,000 (GFA)

Land Use Tenure 40 years, expiring in 2051

Site Information


Metro

connection

at B1

Schematic Diagram of Development

Car park

Two 20-

storey office

towers

Retail

Targeting Mid to High-end Consumer Market

10


Suzhou Information and Site Details

11


Location of Suzhou and SIP

12

Land Area: 8,488 sq km

Urban Land Area: 1,687 sq km

Population: 10.5 mil

2010 Domestic Visitors: 7 mil

2010 Foreign Visitors: 2.6 mil

Shanghai

Wuxi

SuzhouSIP

1 Hour by Car and 30 mins by Train from Shanghai Hongqiao Airport


Suzhou Economy

• Strong economic fundamentals

• Population of 10.5 million

• GDP ranked 5th in China

• GDP growth outpaced national average at 13% in 2010

• GDP per capita higher than Shanghai

• Retail sales growth outpaced national average at 17% in 1H2011

Suzhou SIP Shanghai Singapore

GDP per

capita in

2010

RMB87,607

(S$16,571)

RMB191,327

(S$36,190)

RMB73,297

(S$13,864)

RMB316,220

(S$59,813)

13

GDP per Capita in SIP is more than 2.5X that of Shanghai


Suzhou Economy’s Driven by MNCs and

International Companies

14

Financials Technology

Retail &

Consumer

Goods

• DBS

• Standard Chartered

• Bank of China

• Agricultural Bank of

China

• HSBC

• Alcatel-Lucent

• SHELL

• Nokia

• Samsung

• Eaton

• Philips

• Kirin

• Johnson &

Johnson

• Glaxo Smith Kline

• Wal-Mart

• Kraft


Strategic Location in Key Commercial &

Residential Area

Traditional City Centre

East Jinji Lake CBD

West Jinji Lake CBD

JinjiLake

Subject Site

Direct Connection to Metro Line 1 (to be Opened in 2012) and Line 6


Surroundings of Jinji Lake

Suzhou Science & Cultural Arts Centre

16

Moon HarbourSuzhou International Expo Centre

Mid- to high-end apartments


Located on West Jinji Lake CBD…

17


With Dense Population Catchment …


Surrounded by Hotels, Offices and High-

end Residential

19


Positioning of Mall

20


Largest Shopping Mall in Suzhou

A

BC

Subject Site

3 Blocks of Retail Offerings with Total Area of 250,000 sq m

21


Block C:High-end

Luxury Brand

Blocks A+B: Family & Lifestyle

Catering to the high income shoppers

and tourists

High-street fashion brands, family

entertainment and mid-upper

market offerings

Leveraging on our expertise in East China and our success of ION

Orchard in Singapore, our mall will cater to mid-upper and high-end

shoppers.

Retail Positioning


Blocks A + B: Family and Lifestyle


Block C: High-end Luxury Brands

25


Operational Malls in China by

Net Asset Value

26


Pro Forma NAV4 as at 30 Jun 2011: S$4.0 bil(Based on effective stakes in property value on a completed

basis for properties under development)

Malls: 55

Operational Malls by end of 2011: 59% by NAV

Projects under development: property value is calculated based on total estimated project cost

Operational malls(1) Includes S$450m of capital commitment for Luwan Integrated Development and Raffles City Changning

(2) Includes Raffles City Shanghai and CapitaMall Minzhongleyuan

(3) Includes malls under or previously under master lease namely CapitaMall Shuangjing, CapitaMall Anzhen, CapitaMall Erqi and

CapitaMall Saihan

(4) For projects under development, we assume a 40% gearing. For those completed, actual debt will be used.

27

NAV as at 30 Jun 2011: S$2.55 bil(Based on effective stakes)

Malls: 54

Operational Malls: 43% by NAV

2005(2)

8%

2006(3)

12%

2007:4%

2008:5%

20096%

20105%

1H20113%

2H201117%

201210%

201312%

>2013(1)

18%

Year of Opening

% of Portfolio by

Effective Stakes

China: Operational Malls to Make Up ~60%

of Net Asset Value (NAV) by end of 2011After acquisition of Suzhou site and additional 50%

stakes in Minhang Plaza & Hongkou Plaza in Shanghai

2005(2)

5% 2006(3)

7%

2007:2%

2008:3%

2009:4%

2010:3%

1H2011:2%

2H2011to open:10%

2011Additional50% stakes in

Minhang & Hongkou23%

20129%

201311%

>201321%

(Suzhou10%)


Appendix

28


Economic Statistics

29

GDP per Capita and Disposable Income of Suzhou and SIP is

Higher than Shanghai

*Data from Suzhou Statistics Bureau

Year 2010 Shanghai Suzhou SIP

GDP (RMB billion) 1,687 917 133

GDP Growth yoy 9.9% 13.2% 15.0%

Permanent Population 23,019,148 10,465,994 695,246

GDP per Capita (RMB) 73,297 87,607 191,327

Urban Residents Disposable

Income (RMB)31,838 29,219 34,424

Urban Residents Disposable

Income Growth yoy10.4% 11.0% 12.6%

Retail Sales (RMB billion) 604 241 17

Retail Sales Growth yoy 17.5% 18.7% 19.4%


Background of SIP

30

• Suzhou Industrial Park (SIP) is an important

economic cooperation project between Chinese

and Singapore government.

• It was approved by the State Council in Feb 1994.

• SIP covers a total jurisdiction area of 288 sq km,

of which 80 sq km area belongs to China-

Singapore Cooperative Zone.

• MNCs with operations in the SIP include Kraft

Foods, Johnson & Johnson, Bridgestone,

Samsung, Panasonic etc


For enquiries from analysts/investors,

please contact:

Caroline Fong

Investor Relations

Tel: (65) 6536 5856

Fax: (65) 6536 3884

Email: [email protected]

http://www.capitamallsasia.com

Thank You

31

CapitaMalls Asia Limitedcapitamallsasia.listedcompany.com/newsroom/... · governmental and public...

Documents

Transcript of CapitaMalls Asia Limitedcapitamallsasia.listedcompany.com/newsroom/... · governmental and public...