Local authorities gave clearance to CapitaLand allowing it to reopen its malls in China. The establishments were closed during the nationwide lockdown, but four malls in Wuhan have reopened since Thursday last week. About 80 percent of the stores in CapitaLand's malls and business parks in the country have been operational since March 31, 2020.
According to the CapitaLand Retail China Trust (CRCT) Management chief executive Tan Tze Wooi, increasing consumer trust inspired shopping malls in China to reopen its doors. Tenants and shoppers resumed their normal economic activities in March compared to a standstill experienced last February.
She also added that there is short-term volatility to the company's business due to the pandemic, but CapitaLand continues to maintain its long-term collaborative position with its business partners that share a positive view with the company regarding the Chinese market.
The company's residential sales offices in China have also reopened progressively since March. It has experienced 1.3-billion-yuan worth of transactions last month. The yield was more than 5.5 times its sales in January and February combined.
Four malls in Wuhan have reopened last Thursday after local authorities gave CapitaLand the go-signal in opening its stores. In a separate filing, CRCT announced that its financial portfolio improved along with heightened business activity in the country. The yield acted as the company's best performance compared to February values.
Before the Wuhan re-openings, La Botanica township in Xi'an already opened its doors since March 24. It accumulated 88-unit sales in just four days with a gross value of 405 million yuan. Other sales of the company during the first quarter included that of Jing'an One located in Shanghai and Citta Di Mare in Guangzhou. Its sales also improved with purchases of La Riva properties. The three properties with the company summed up to a value of one billion yuan.
According to the CapitaLand group China president Lucas Loh, Chinese home buyers were more discerning after the easement of the pandemic. He also perceived that the company's healthy values indicated signs of sustained business activity and growing market demand for new homes among Chinese citizens. The developer added that most of its projects are currently under construction and that work has resumed since the lifting of local lockdowns.
The company also revealed that it now focuses on its boost in annual sales and handover targets. Its shares already increased by 4.6 percent to 2.74 USD since Monday while CRCT units contributed a 6.6 percent increase to 1.3 USD price to its financial portfolio improvement.
