[updated Jan 23: headline amendment from "CapitaLand invests in new integrated development in Wuhan, China"; corrected reported divestment announcement of CapitaLand's China shopping mall portfolio]

CapitaLand has signed a Strategic Cooperation Memorandum of Understanding (MoU) with the district government of Wuchang on Jan 18, with plans to develop a proposed integrated development on a prime site in Wuchang, Hubei Province. The potential scale of the development is expected to surpass all of CapitaLand’s existing properties in Central China.

CapitaLand has five other developments in Wuhan, including two integrated developments in Wuhan’s Hankou area, namely CapitaMall Westgate and CapitaMall Wusheng, as well as two other shopping malls. About 1,526 units launched to date at the 2,246-unit residential development The Lakeside Wuhan have been sold. The project is currently under development.

Rapid urbanisation has created a high demand for integrated developments in the area, says Lim Ming Yan, president and group CEO of CapitaLand. He adds that “Wuhan is a high-growth city that is set to benefit from China’s Belt and Road Initiative”.

Earlier this month CapitaLand announced that it would be divesting its share of interest in a group of companies that hold 20 retail assets in China, with an agreed value of about $1.7 million. The transaction is expected to generate net proceeds of about $660 million, and a net gain of about $75 million, says CapitaLand.