All of the malls are currently under development and are anchored by a Tesco hypermarket. The remaining space is to be let to a mix of international, national and regional brands. The total capital value of the transaction is c.US$280m.
This is the second joint-venture investment between HSBC Specialist Investments, Metro and Tesco. The first joint-venture for 2 mixed-use developments and one mall development in north-east China closed in December 2009. All 3 malls of the first joint-venture investment successfully opened in 2010.
Stuart Jackson, Head of Real Estate for HSIL, commented:
“This investment provides us with an opportunity to build on our excellent relationship with Tesco accessing 3 high quality retail assets in fast-growing Tier 2 cities in China. The properties will be developed and managed by Tesco who are an experienced partner with a strong track-record in both Europe and Asia. The investment provides exposure to domestic retail consumption which is expanding rapidly.”