CapitaLand and CapitaLand Retail China Trust (CRCT) on Tuesday said they jointly acquired a shopping mall, known as Rock Square in Haizhu District in Guangzhou for about S$688.9 million.
CRCT is the majority shareholder with a 51 percent stake in the joint venture, while CapitaLand owns the remaining, the company said in a regulatory filing.
This marks CapitaLand's second mall and CRCT's first in Guangzhou, the provincial capital of Guangdong Province in South China.
Rock Square is one of the largest malls in Haizhu District with a gross floor area of about 83,591 sq m.
The mall is located in Haizhu District, Guangzhou's second most populous urban district that also ranks high in terms of disposable income per capita
"Given Rock Square's significant scale and strategic location with excellent transport links, the acquisition presents a rare opportunity to increase our exposure to the high-growth retail market in a first-tier city," said Jason Leow, CEO of CapitaLand Mall Asia.
The transaction is expected to be completed the first quarter of 2018.