Real estate fund manager ARA Asset Management is teaming up with Straits Real Estate and ICBC International Holdings to acquire Sanlin InCity, a retail mall in Shanghai, China, according to an announcement.
Details of the transaction were not disclosed.
Located in the Sanlin District of Pudong, Sanlin InCity is the only competitive mall in the area, with a strong population catchment of over 400,000 and no new supply within a 3-km radius projected within the next three years, ARA said.
The mall also attracts a stable consumer base thanks to primarily middle to high-income families in the neighbourhood and a large catchment of office workers from the nearby Qiantan Financial District.
Sanlin InCity comprises about 83,074 sq m of gross floor area and is currently 91.3 per cent occupied. It was refurbished in the fourth quarter of 2018, and nears the end of its first lease cycle.
“The mall presents an attractive opportunity for a seasoned operator to upgrade the tenant profile and capitalise on positive rental reversions, as well as implement asset enhancement/repositioning plans,” ARA said.
ARA Private Funds acting CEO David Kim said the firm will execute asset enhancement and repositioning plans to the property as the purchase is completed. The deal is expected to finalise in the first quarter of 2020.
The proposed acquisition is the second transaction in China by the fund manager this year, following its joint acquisition of The Atrium in Chengdu in June with China International Capital Corporation’s Qihang Fund.
ARA’s portfolio in mainland China included 10 assets in the office, retail and hospitality sectors totalling approximately 76.7 billion yuan ($11 billion) as at the end of September 2019.