(Yicai Global) Jan. 5 -- Singapore's Capitaland Limited will sell its stake in 20 retail shopping malls in China for USD1.2 billion (CNY8.3 billion). The company aims to regroup and seize market growth opportunities in China.

The transaction will be conducted via CapitaLand Mall Asia, an affiliate of Capitaland Limited, and the retail assets will be sold to a non-related party, the company said in a filing to the Singapore Stock Exchange today. The transaction expected come to an end in the second quarter will possibly bring net proceeds of USD500 million (SGD660 million) and a net gain of SGD75 million. The sales plan will cause little damage to recurrent revenue, for the valuation of the 20 shopping malls account for only 4 percent and 7 percent of the company's total malls in the world and in China, respectively, the filing said.   

The 20 shopping malls are distributed in 19 cities including Beijing, Chongqing, Anyang and Nanchang, and their average gross floor area (GFA) excluding the parking lot is 40,000 square meters.

In China where the retail market is undergoing a transformation, the middle class continues to grow and the omni-channel retailing is becoming increasingly popular, said Lim Ming Yan, president of Capitaland Limited. Therefore, the group has decided to grasp the opportunity to reorganize the shopping malls and focus on other regions so as to seize growth opportunities in China. Upon completion of the sales transaction, the group will own 49 shopping malls in China, of which 45 malls are located in first- and second-tier cities.