CapitaLand , one of Asia’s largest real estate companies headquartered and listed in Singapore, has announced plans to open two more malls in India over the next three years, bringing the number of its operational malls managed by its shopping mall business, CapitaLand Mall Asia, to six by the end of 2019.
CapitaLand’s wholly-owned serviced residence business unit, The Ascott Limited (Ascott), has also announced that it has secured a contract with Sandhya Hotels Private Limited to manage three new serviced residences in India. Two properties are in the major technology cities of Hyderabad and Bengaluru and a third serviced residence is in Sri City, less than an hour’s drive from Chennai.
The announcement was made at The Celebration Mall, Udaipur, in the presence of Singapore’s prime minister Lee Hsien Loong. The Celebration Mall is wholly owned by CapitaLand Mall India Development Fund, which is managed by CapitaLand. CapitaLand shared with Prime Minister Lee that the mall has played a key role in catalysing the economic development of its neighbourhood. It opened in July 2011.
Lim Ming Yan, president and group CEO, CapitaLand, said: “As the world’s fastest growing and third largest economy with a population of 1.3 billion, India is experiencing strong demand for quality real estate products and solutions as it undergoes rapid urbanisation and attracts more foreign direct investment. Specifically, India has been looking to tap Singapore’s experience in urban planning as it plans to upgrade and build 100 cities. India thus presents opportunities for CapitaLand to share our expertise in real estate development and management, particularly in integrated developments where we have established a strategic advantage, as well as in the shopping mall and serviced residence sectors where we have already gained a foothold in the country.
CapitaLand’s two upcoming malls are Forum, Mysore, and Forum, Cochin, opening next year and in 2019 respectively. Both are developed in partnership with local real estate developer Prestige, with whom CapitaLand also partners for three other operational malls, namely The Forum Neighbourhood Mall, Bengaluru; The Forum Sujana Mall, Hyderabad; and The Forum Fiza Mall, Mangalore. Including two other malls under development in Jalandhar and Nagpur, CapitaLand is Singapore’s largest shopping mall developer and manager in India with a total of eight malls.
“With more liberal rules on foreign direct investment in real estate, CapitaLand has been presented with a number of opportunities including greenfield projects, properties under construction as well as operational-ready projects in key Tier 1 cities. We are also in discussion with several parties on management contracts for shopping malls and serviced residences. As the Indian real estate market opens up, CapitaLand looks forward to greater contribution in the development of the market through quality projects, benefitting end-users and at the same time creating opportunities for investors,” he said.
Jason Leow, CEO, CapitaLand Mall Asia, said: “In Asia, India is the next big retail prize after China. India has a large and growing middle class with aspirations for a better life, and more than 400 million young consumers between 15 and 34 years of age who are driving purchases in categories such as mobile phones, fashion, accessories and F&B. Such favourable demographics are drawing retailers’ interest to India’s fast-growing consumer market, which is expected to be worth US$1.3 trillion by 2020, registering a compounded annual growth rate of 9.7% from 2000 to 20201. Coupled with the relaxation of rules for foreign single-brand retailers entering the country, retailers’ demand for shop space in quality malls at strategic locations in India is set to rise. As one of Asia’s leading shopping mall developers, owners and managers, we are able to leverage our retail expertise and industry leading network of about 15,000 leases to support local and international retailers who are keen to do business in India.”