Guthrie buys into Chinese retail mall business

Guthrie buys into Chinese retail mall business

 

GUTHRIE GTS has bought a 14 per cent stake in a China retail mall business.

The mainboard-listed engineering and property group announced yesterday it had bought a stake in Shenyang Shida Logistics for $5.98 million from GIC Real Estate. This is the real estate arm of the Government of Singapore Investment Corp.

 

The acquisition, its first in China, said Guthrie, has been approved by the Liaoning provincial government.

 

The Chinese firm was set up to own and refurbish the Life Square retail mall in Shenyang city. The mall has a gross floor area of 30,000 sq m and will boast an extra 15,000 sq m after the refurbishment, due to be completed by year-end. Among the 200 tenants are a 9,000 sq m hypermart and six-screen cineplex.

 

The deal, said Guthrie executive director Michael Leong, offered ‘a good opportunity for Guthrie to participate in the growing retail sector in China’.

 

Guthrie will provide retail planning and mall management for Life Square. This will allow it to ‘showcase Guthrie’s brand and service capabilities’, and help further its ambitions in the Chinese mall business, said Mr Leong.

 

Shenyang Shida Logistics is a joint venture between GIC Real Estate and Chinese property developer Super Shine, which is listed on the Shenzhen Stock Exchange. Following the sale, GIC Real Estate will retain a majority stake in the company and control over it.

 

Guthrie shares closed unchanged at 33 cents yesterday.

 

Source: Straits Times

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