On 1 March 2024, the Bixiang Chuxiang project, developed and constructed by Changsha Chengfa Hengwei Real Estate *** hereinafter referred to as "Chengfa Hengwei") and operated and managed by CapitaLand Investment (hereinafter referred to as "CapitaLand"), officially started, which is the first independent commercial block of CapitaLand in China's "output management" and is expected to open in 2026.
Earlier this year, CapitaLand signed three commercial management agreements with Chengfa Hengwei for three commercial projects in Changsha, namely Bixiang Chu Lane, One Convention and Exhibition Center and Xichen Zhiguang, and CapitaLand will participate in the asset planning, opening preparation, commercial operation and asset management of these three projects in the form of export brand and management. Bixiang Chu Lane, which started construction this time, is one of them. This is the second strong alliance between the two parties after CapitaLand's One Center project, which marks CapitaLand's further expansion of its asset-light business in China and its continued expansion of asset management scale.
Mr Loh Chi Sheng, Managing Director, Commercial Management, Central China, CapitaLand Investment (China) South and West China, attended the groundbreaking ceremony and said, "CapitaLand has accumulated 19 years of experience in commercial operation and management in Changsha, has a mature operation and management team, and is familiar with the consumption habits of local customers. At the same time, CapitaLand and Chengfa Hengwei have been working together in Changsha for more than 8 years, and we look forward to working with the owners to replicate these successful management and operation experiences in new projects, bringing more diversified and international entertainment and consumption experiences to Changsha citizens, creating long-term value and sustainable returns for our partners, and contributing to the commercial development of the area and the city." ”
The Bixiang Chuxiang project officially started.
Bixiang Chuxiang project is located in the core area of Changsha Wuyi business district, south to Laodong West Road, west to Xiangjiang Middle Road, north to Xia Bixiang Street, adjacent to the east bank of the Xiangjiang River, across the river from Orange Island, connected to Lingguandu Station of Metro Line 3, with excellent geographical location and traffic conditions, and a strong business atmosphere. The total construction area of the project is about 510,000, of which the ground is a multi-storey staggered open commercial block, and the underground 1 floor is a parking lot and an underground commercial street. As a rare and low-density art building complex on the east bank of the Xiangjiang River, the project contains the "Tianfu Palace", a cultural relics protection unit of Changsha City, which perfectly integrates modern aesthetics and ancient elements.
As the management and operator of the project, CapitaLand will make full use of the project's core location advantages, give full play to its international professional operation capabilities and resource network, as well as local operation and management experience, to build the project into a Changsha city living room, leading the exquisite and elegant quality of life and leisurely lifestyle of Star City. Bixiang Chuxiang will be positioned as "activating new social power", integrating trendy life and local culture, and plans to introduce a variety of business combinations such as celebrity manager brands, borderless innovative catering, trendy brand incubation bases, and circle social experience retail, so as to create a full-time, diversified, and relaxed social vitality field.
Renderings of the Bixiang Chu Lane project.
The re-collaboration with Chengfa Hengwei demonstrates the high level of trust and recognition of CapitaLand by our partners. As the first shopping mall output management project jointly developed by CapitaLand and Chengfa Hengwei in Changsha, CapitaLand One Centre opened in 2018, and in the six years since its opening, under the refined operation of CapitaLand's retail management team, the mall's occupancy rate has remained above 90% all year round, and the customer flow has continued to grow steadily. In the past two years, with the entry of large financial institutions around the project and the influx of new urban residents, the business atmosphere has become stronger and stronger, and CapitaLand One Center has gradually become a new commercial landmark in the Hexi area of Changsha.
CapitaLand and Chengfa Hengwei's first commercial project in Changsha: CapitaLand One Centre.
In addition to the continuous development of the commercial sector, CapitaLand and Chengfa Hengwei have also deepened their cooperation in the accommodation business. In 2023, Ascott, CapitaLand's world-renowned owner and accommodation operator of serviced apartments and hotels, signed three new management agreements with Chengfa Hengwei, bringing the total number of serviced apartments in Changsha to four.
In recent years, Changsha's economic and social development has been rapid, and it has maintained strong consumption power despite the slowdown in the overall consumer market, especially the cultural industry, night economy, and Internet celebrity brands have become important features of Changsha's consumer market. In 2023, the per capita disposable income of urban and rural residents in Changsha will reach 6120,000 yuan, ranking among the best cities in the central region. In the "Report on the Influence of China's Urban Night Economy" released by Xinhua News Agency's Lookout Think Tank and Tencent, from 2020 to 2022, Changsha has been selected as the top three of the top ten influential cities in the night economy for three consecutive years, and has been called the "sleepless" consumption capital by many people. At the same time, Changsha's innovative consumption scenarios and new consumer brands continue to innovate, and more than 80 new consumer brands such as Wenheyou, Tea and Beauty, Snacks are Busy, and Ningji have been successfully cultivated, which continue to drive consumption growth and rejuvenate urban consumption.
CapitaLand entered the Changsha market in 2005 and currently manages two shopping malls in Changsha: CapitaMall Yuhuating and CapitaLand One Center; 2 serviced apartments: Ascott Xiangjiang Fortune Financial Center Changsha and Citadines Xingsha Residence Changsha. With the commencement of this new project, CapitaLand will further enhance its presence in Changsha, a new consumer city, and continue to enhance its brand influence.