As an innovative product among public REITs, consumer infrastructure REITs have always attracted much attention from the market. Recently, another new product has been approved.
On June 28, ChinaAMC Capital Outlets Closed-end Infrastructure Securities Investment Fund (hereinafter referred to as "ChinaAMC Capital Outlets REIT") officially obtained the approval of the China Securities Regulatory Commission for registration and obtained a no-objection letter from the Shanghai Stock Exchange. ChinaAMC's first outlet REIT is the first consumer infrastructure REITs in China with outlet projects as the underlying asset, which not only adds new members, but also further enriches the asset types.
BCCD's application for consumption infrastructure REITs with its high-quality outlets, Jinan Capital Outlets Project and Wuhan Capital Outlets as the underlying assets, is not only an important measure to actively fulfill the responsibilities of state-owned enterprises in the capital and implement the country's decision-making and deployment of "giving priority to the recovery and expansion of consumption", but also will help the company open up the whole chain of "investment, financing, management and withdrawal" of commercial heavy assets, revitalize existing assets, optimize capital structure, and help enterprises enter a virtuous cycle.
Value can be expected
The first outlet consumer REIT
OUTLETS, also known as "brand outlet shopping malls", is one of the world's mainstream and mature commercial formats. Since the opening of China's first outlet in 2002, after more than 20 years of development, the outlet format has become an important subdivision of China's retail industry, with the characteristics of "famous products + discount + experience" to create a "cost-effective model", to achieve differentiated competition with other retail formats, and deeply meet the core life demands of the people from "material and cultural needs" to "better life needs".
Jinan's first outlet project
Located in the core area of the eastern new city of Jinan, the first outlet project in Jinan opened in January 2019 and has ranked first in the Jinan outlet market for five consecutive years in terms of sales since its opening.
The Tangye area, where the project is located, is planned as the regional center, cultural and creative industry center and emerging industry carrier in the eastern urban area of Jinan.
The building form of the project is a three-storey open block on the ground, with a construction area of 116,000 square meters and a rentable area of 52,000 square meters, settled in more than 200 international and domestic well-known brands, mainly radiating customers around the project of about 30-40 kilometers, and can be further extended to surrounding cities during holidays, such as Dezhou, Tai'an, Zibo, Laiwu and other places.
Wuhan's first outlet project
Located in the East Lake High-tech Development Zone (Optics Valley) of Wuhan City, Wuhan Capital Outlet Project opened in April 2018 and has been the leading outlet market in Wuhan south of the Yangtze River since 2019.
The project is adjacent to the Hubei Provincial Olympic Sports Center and the Optics Valley International Tennis Center, with convenient external transportation, many business offices and industrial parks in the surrounding area, a strong industrial atmosphere, obvious population attraction advantages, and strong consumption potential.
The building form of the project is a two-storey above-ground and three-storey open block, with a construction area of 87,000 square meters and a rentable area of 49,000 square meters, settled in more than 200 international and domestic well-known brands, mainly radiating customers within a range of about 25 kilometers around the project, and can be further extended to surrounding cities on holidays, such as Huanggang, Huangshi and other places.
In particular, it is worth mentioning that compared with other commercial formats, outlets can effectively meet the consumer demand under different economic cycles by virtue of the business model of "famous products + discounts", have the support of a wider range of consumer groups, and have strong anti-cyclical attributes. From a domestic point of view, from 2020 to 2022, various retail formats have been affected to varying degrees, but the performance of the outlet format has continued to be strong, and the annual growth rate ranks first among major retail formats. In the new era of consumption, the transformation of the public's lifestyle and the burst of demand for family micro-tourism have injected strong development impetus into the outlets. In terms of stimulating domestic demand, promoting consumption, and building a better life, its unique value and advantages are becoming more and more prominent.
The future is promising
Professional operation empowerment
Post-operation and service is a key part of the entire commercial real estate industry chain, which has a far-reaching impact on the preservation and appreciation of commercial real estate.
After the establishment of China Capital Outlets REIT, Beijing Capital Urban Development Group Co., Ltd. (hereinafter referred to as "Capital Juda"), a subsidiary of Beijing Capital Urban Development Group Co., Ltd. (hereinafter referred to as "Beijing Capital Urban Development Group"), served as the operation and management coordination agency, and Beijing Capital Juda Commercial Management Co., Ltd., a subsidiary of Beijing Capital Juda, served as the operation and management implementation agency.
Beijing Capital Group Co., Ltd. (hereinafter referred to as "Beijing Capital Group") is a large state-owned group company under the Beijing State-owned Assets Supervision and Administration Commission, as a large-scale industrial sub-group of Beijing Capital Group focusing on the field of urban development, with the three major businesses of "comprehensive urban development, comprehensive urban operation, and urban renewal and upgrading" as the main channel, and actively undertaking policy support businesses such as affordable housing construction and infrastructure construction, and is committed to becoming a comprehensive development and service operation platform for urban development. It is an important strategic force of Beijing Capital Group to serve urban development.
BCCD Group (BCL) officially entered the outlet business in 2009, and after more than ten years of intensive cultivation, the outlet business segment has entered a lean operation period from the investment and expansion period. As the flagship commercial investment management platform of Capital Urban Development Group with outlets as its core business, Capital Juda currently has 15 outlets under management across the country, with a total construction area of about 1.8 million square meters, realizing strategic coverage of municipalities, provincial capitals and potential consumption cities, and has established good cooperative relations with domestic mainstream brands with outlets, with a total of nearly 2,000 cooperative brand resources. With its excellent comprehensive strength, it has established a leading position in the outlet industry, and "Capital Outlets" has become one of the leading brands in China's outlet industry.
In the future, BCCD will continue to promote the construction of high-quality consumption scenarios, serve the society and people's livelihood, and continue to inject high-quality assets into REITs in the system to actively participate in and promote the high-quality development of the REITs market.