SINGAPORE (Jan 18): CapitaLand has, through its wholly-owned subsidiary CapitaLand China, signed a strategic cooperation memorandum of understanding (MoU) with Wuchang’s district government to develop a proposed integrated development on a prime site in the area.  

Wuchang is known as the urban core of Wuhan, the capital of Hubei Province in China.

In a Thursday announcement, CapitaLand says the potential scale of its proposed integrated development is expected to surpass all of the group’s existing properties in central China.

It also highlights that the move is in relation to expansion opportunities under CapitaLand’s “core city clusters, dominant assets” strategy, following the major reconstitution of its China shopping mall portfolio.

Lim Ming Yan, president and group CEO, says CapitaLand’s separate divestment of 20 non-core retail assets will further enhance the group’s “financial flexibility to invest in other compelling opportunities”.

See: CapitaLand divests stakes in companies holding 20 retail assets for $75 mil gain

He also describes Wuhan as a high-growth city that is set to benefit further from China’s Belt and Road Initiative, given its reputation as the major transport and commercial hub in central China with strong economic fundamentals.

“CapitaLand’s leadership in integrated developments is fast gaining market recognition. Serving as an enabler to catalyse an area’s economic growth, our integrated developments are well-sought after by Chinese urban planners around the country,” says Lucas Loh, CEO of CapitaLand China.

See: CapitaLand to open 8 shopping malls in 2017, seeks retailers at MAPIC in Cannes

“We will continue to build on our growing track record to take on more integrated developments in strategic locations that maximise the returns on our investments,” adds Loh.

Wuhan is part of the five core city clusters under CapitaLand’s China strategy, which also includes Beijing/Tianjin, Shanghai/Hangzhou/Suzhou/Ningbo, Guangzhou/Shenzhen, and Chengdu/Chongqing/Xi’an.

Shares in CapitaLand closed 1 cent higher at $3.81 on Thursday.