(Hong Kong, May 11 2022) CITIC Capital Holdings Limited (“CITIC Capital”)’s Real Estate Group announced that it has entered into an agreement with SCPG, a leading commercial real estate investment and asset management operator in China. Under the agreement, SCPG will acquire a 50% interest in the equity tranche of the CITIC JIC – Changsha ID Mall Asset-Backed Securities Scheme and provide operation and management services for the project and to enhance the overall operating capability of the target assets.
On the morning of May 11, CITIC Capital and SCPG signed the agreement. Stanley CHING, Managing Partner and Co-Head of Real Estate Group, Roger ZHU, Managing Partner and Co-Head of Real Estate Group, Lisa WANG, Managing Director of Real Estate Group and Samuel Lu, Managing Director of Real Estate Group, SCPG’s Chairman DING Liye, SCPG’s president WANG Haiwu and other executives attended the signing ceremony together. Witnessed by guests from Hong Kong, Shanghai, Changsha and Wuhan, representatives of the two sides signed a contract online to demonstrate the confidence of CITIC Capital and SCPG in the future development of the ID Mall project and China’s real economy in the context of the epidemic.
Changsha ID Mall is the city’s first large-scale integrated shopping mall with a gross floor area of approximately 120,000 square meters. Since acquiring the mall in 2010, CITIC Capital has been constantly upgrading it and improving its operational efficiency, making Changsha ID Mall a core and iconic commercial project in Changsha’s Wuyi business district, backed by value creation and solid consumer base. In 2017, CITIC Capital issued the first Quasi-REITs converted from USD fund structure in China based on the sound operation and brand franchise of Changsha ID Mall. The REITs was well received by investors, demonstrating strong market recognition of CITIC Capital’s commercial real estate investment and management capabilities. Through this acquisition, SCPG will further establish its foothold in the Changsha market and promote the renewal and upgrade of Changsha ID Mall via its rich experience in operating shopping malls.
Stanley CHING, Managing Partner and Co-Head of Real Estate Group of CITIC Capital said: “CITIC Capital has built a strong partnership with SCPG Group for years, and we have always been exploring ways to collaborate further. We are honored to join hands with SCPG again to continue to enhance the asset quality, operations and consumer experience, and unleash further value and growth momentum for the Changsha ID Mall asset-backed securities scheme, especially in the current epidemic environment.”
Roger ZHU, Managing Partner and Co-Head of Real Estate Group of CITIC Capital said: “CITIC Capital has always been committed to discovering the best assets, and providing diversified and innovative financial services for the best enterprises in China, while attaching equal importance to asset management and capital management. We are confident that SCPG will inject new growth momentum into Changsha ID Mall with its rich experience in operating commercial real estate projects.”
SCPG’s Chairman DING Liye said: “The foundation of domestic real economy is solid and we are optimistic about the potential of commercial real estate industry. The investment in mature asset projects will help to improve the breadth and depth of our commercial network and help us to explore the core regional market. We are confident to provide richer and high-quality service experience for local customers. In the future, Changsha ID Mall will become the first InCity（印象城） in Changsha with stronger integration and connection with Changsha Inreach（长沙印象汇） will be expected to build a new trendy landmark for the young clientele.”
CITIC Capital has a strong conviction in commercial real estate and has established unparalleled resources and a seasoned team. Over the years, the team has built up a wealth of experience in real estate investment management; especially in the field of commercial real estate management and urban renewal, it has formed a mature management model of “investment-asset management-capital market”, realizing a virtuous cycle of financial capital and real estate projects. In the future, the company will continue to actively explore commercial real estate opportunities, drive upgrades and strategic innovation, and create values for investors.
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About CITIC Capital
Founded in 2002, CITIC Capital Holdings Limited is an alternative investment management and advisory company. The firm manages over USD17 billion of capital across 100 funds and investment products through its multiple asset class platform covering private equity, real estate, structured investment & finance, and asset management. CITIC Capital has over 230 portfolio companies that span 11 sectors and employ over 500,000 people around the world.
About SCPG
SCPG, founded in 2003, has been engaged in investment, development, operation and management of shopping centers with an international vision, and its business spans the whole value chain of commercial real estate. In 2016, SCPG became a member company of Vanke Group, which further boosted its commercial resources, business platforms, and development and management capabilities. As of now, SCPG manages more than 100 projects in more than 50 cities across the country with assets of nearly RMB 50 billion and an area of nearly 10 million square meters in total.
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Cindy TAM
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CITIC Capital Holdings Limited
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Irene GAO
Senior Associate, Corporate Relations
CITIC Capital Holdings Limited
Tel: +852 3710 6814
irenegao@citiccapital.com