The manager of CapitaLand Retail China Trust (CRCT) has launched CapitaMall Nuohemule on Dec 20 with an occupancy rate of 100%.
The mall’s over 200 committed tenants opened for business on the first day, which attracted a footfall of about 100,000 shoppers, close to four times the daily traffic of CapitaMall Saihan, based on the average daily traffic measured in November 2020.
CapitaMall Nuohemule, which was formerly known as Yuquan Mall, is located in Hohhot, Inner Mongolia. It is located in the well-established Yuquan district atop the Nuohemule Station on the city’s Metro Line 2.
The mall spans nine storeys with six levels above ground, and a gross floor area (GFA) of 100,047 square metres.
It features a wide variety of experiential and smart retailing concepts, as well as Hohhot’s first indoor sports park and a live theatre.
CRCT says it acquired the mall from unrelated third parties in 2019 when the project was under development.
Following the mall’s opening, CRCT will be divesting CapitaMall Saihan, also in Hohhot, as part of a bundle deal to strengthen CRCT’s portfolio. The divestment of CapitaMall Saihan is expected to be completed in 1H2021.
“As the capital city of Inner Mongolia, Hohhot is an important gateway to and a key beneficiary of China’s Belt and Road Initiative. The city’s improving connectivity and steady economic growth has seen a rising middle class having higher spending power to pursue quality lifestyles. CapitaMall Nuohemule has seen strong leasing interest even as China’s economy is recovering from the impact of COVID-19 and opened with full occupancy to the delight of the local community,” says Tan Tze Wooi, CEO of the manager.
“The bundle deal effectively lengthened the average balance tenure and enlarged the lettable area of CRCT’s portfolio. Compared with CapitaMall Saihan, CapitaMall Nuohemule is almost double in lettable area, with a greater capacity to host new and interesting retail concepts and broaden its trade categories to diversify its tenant mix. It also has a longer balance tenure that expires only in 2049, compared with 2041 for CapitaMall Saihan, making CapitaMall Nuohemule a more valuable asset for CRCT in the longer term,” Tan adds.
As at 1.21pm, units in CRCT are trading 2 cents lower or 1.4% down at $1.37.
