Raffles City The Bund shopping center opens in China
The opening of Raffles City The Bund in China is the latest testament to CapitaLand’s strengths in iconic integrated developments.
The final element of the over 300,000 square meter (m²) mega-structure intended to accommodate the public is the 120,000 m² shopping center.
The retail component of Raffles City The Bund, CapitaLand’s third and largest Raffles City development in Shanghai, opened with great fanfare last Saturday (July 10, 2021).
The opening ceremony was jointly chaired by Singapore’s Ambassador to China, Mr. Lui Tuck Yew and Shanghai Hongkou District Party Secretary, Ms. Guo Fang.
A healthy engaged occupancy rate of 92% reflects the depth and diversity of the Chinese commercial scene.
More than half of the mall’s more than 200 brands are either new to China, East China, Shanghai or to the CapitaLand portfolio.
Heavy buyer traffic of over 300,000 was recorded on the day it opened, marking an encouraging start for Raffles City The Bund’s retail operations.
Mr. Puah Tze Shyang, CEO, Investment and Portfolio Management, CapitaLand China, said: “The successful launch of Raffles City The Bund is a testament to the growing strength of our Raffles City franchise and the value CapitaLand brings to our investors through our premier operating platform.
It was in Shanghai that CapitaLand’s Raffles City brand made its Chinese debut 17 years ago with the opening of Raffles City Shanghai.
Since then, we’ve added eight more Raffles City developments in key cities across China and made the Raffles City brand a premium commercial real estate brand. As the 100% asset manager and operator of the entire Raffles City portfolio, CapitaLand will continue to demonstrate our ability to create, enhance and unlock substantial value.
In addition, CapitaLand holds stakes in each of them. We are therefore well placed to participate and benefit from the future of these Raffles City developments in China. “
Mr. Puah added, “Our Raffles City portfolio has always been an important part of CapitaLand’s investment management strategy. We combine fund and asset management capabilities with a strong operating platform to grow our funds under management, expand our base of financial partners and increase recurring management fees. CapitaLand’s unique strengths as an experienced asset and portfolio manager allow Raffles City developments to continue to generate an attractive FRE / FUM ratio.
The reinvestment of recycled capital and asset management, as well as our ability to execute, will become important barometers of our capital efficiency going forward. The Chinese market values strong franchises, which stand out for their quality in a crowded and uneven market. In June 2021, we onboarded Ping An as a strategic and long-term capital partner for six of our Raffles City developments, which will allow us to continue to manage assets and grow the Raffles City brand. CapitaLand is delighted to jointly own and expand the Raffles City portfolio with our financial partners. We must and will continue to invest to stay ahead in the market.