Carlyle Group to Buy Stakes in 2 Chinese Shopping Malls

The Wall Street Journal 28 May 2013
SHANGHAI–Private-equity firm Carlyle Group will buy stakes in two Chinese shopping malls owned by SZITIC Commercial Property Co. Ltd., in the latest sign that foreign investors are still keen on investing in China’s real-estate sector.
U.S.-based Carlyle will buy a 49% stake in Suzhou In-City Mall and Hangzhou Gudun In-City Mall, using funds from its Asia real estate group, according to a company press release Wednesday. Terms of the deal weren’t disclosed.
“Rising household disposable income, continuing urbanization, changing demographics and government initiatives to promote domestic consumption will continue to benefit China’s retail sector, supporting growth in both rent and capital value for well-operated retail properties like In-City shopping malls operated by (SZITIC Commercial Property),” said Jason Lee, Head of Carlyle Asia Real Estate, in the release.
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