The Carlyle Group Acquires 49% Stake in SZITIC Commercial Property’s In-City Shopping Malls

Strategic Partnership Committed to Developing China’s Retail Property Sector

Beijing, China - Global alternative asset manager The Carlyle Group L.P. (NASDAQ: CG), today announced a strategic partnership with SZITIC Commercial Property Co., Ltd (“SCP”), acquiring a 49% stake in Suzhou In-City Mall and Hangzhou Gudun In-City Mall, two regional shopping malls owned and operated by SCP, one of the largest shopping mall developers and operators in China. The investment was made by a vehicle advised by Carlyle’s Asia real estate group. Financial terms of the acquisition were not disclosed.

Suzhou In-City Mall, located between Suzhou Industrial Park and the old city center, has four aboveground floors and one basement retail floor with an aggregate gross floor area of 136,000 square meters, while Hangzhou Gudun In-City Mall, located in the northwest part of the Xihu District of Hangzhou, has four aboveground floors and two basement floors for car parks with an aggregate gross floor area of 52,000 square meters. Both properties, in operation for over three years, are one-stop regional malls integrating fashion and electronics with entertainment and food and beverage services.Their tenants include well-known brands such as Wal-Mart, Sephora and Starbucks. 

Liye Ding, Chairman and CEO of SCP, said, “The partnership with Carlyle will enable us to expedite our business development and expansion plans, as well as to enhance the diversity and quality of our tenant portfolio by offering differentiated products and services.  Leveraging Carlyle’s strong retail industry expertise and global network, we will explore more value-added initiatives to boost competitiveness and to meet the changing consumer demands in China.”

Jason Lee, Managing Director and Head of Carlyle Asia Real Estate, said, “Rising household disposable income, continuing urbanization, changing demographics and government initiatives to promote domestic consumption will continue to benefit China’s retail sector, supporting growth in both rent and capital value for well-operated retail properties like In-City shopping malls operated by SCP.  We are confident in the prospect of China’s fast-growing retail sector, and are delighted to partner with SCP, an experienced and reputable retail operating partner in China.”

Carlyle Asia Real Estate (CARE) was established in 2001 and primarily invests in value-add opportunities across all real estate sectors in Asia through its real estate private equity funds.  CARE also invests in core assets on behalf of its separate accounts.  With local teams based in Hong Kong, Shanghai, Singapore and Tokyo, CARE has invested in aggregate over US$2.1 billion of equity in Asia.  In China, CARE has made 14 investments with a total capitalization of US$ 2.5 billion.

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About SZITIC Commercial Property Co., Ltd
Incorporated in 2003 and headquartered in Shenzhen, SZITIC Commercial Property Co., Ltd. (“SCP”) is one of the largest shopping mall developers and operators in China focusing on the design, development, leasing and management of regional shopping malls.  SCP has developed a total gross floor area (“GFA”) of more than four million square meters shopping malls in the past 10 years, and has partnered with a number of well-known international retail developers and operators and financial institutions including Wal-Mart, Simon Property Group, CapitaLand, Morgan Stanley, Pacific Alliance Group and Harvest Capital. 

Company Web: www.siticp.com
InCity Web: www.incityplaza.com/html/InCityIndex.html

About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $176 billion of assets under management across 114 funds and 76 fund of funds vehicles as of March 31, 2013. Carlyle's purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,400 people in 34 offices across six continents.

Web: www.carlyle.com
Videos: www.youtube.com/onecarlyle
Tweets: www.twitter.com/onecarlyle
Podcasts: www.carlyle.com/about-carlyle/market-commentary

Media contacts:

The Carlyle Group

Tammy Li
Phone: +852 2878 5236
tammy.li@carlyle.com

Brian Zhou
Phone: +86 10 57067070
brian.zhou@carlyle.com

SZITIC Commercial Property Co., Ltd

Yijian Dong             
Phone: +755 3338 0288              
dongyijian@siticp.com

Winnie Ding
Phone: +755 3338 0288
dingweizhong@siticp.com

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