Singapore-listed Retail REIT CapitaRetail China Trust (CRCT) (SGX: AU8U) has received approval from the Chinese government to acquire the Grand Canyon Mall in Beijing.

CapitaRetail China Trust currently has a portfolio of 9 malls, 4 of which are in Beijing.

In what will be the tenth property in CRCT’s portfolio, the Grand Canyon Mall is located along the South Third Ring West Road in Beijing’s up-and-coming south region. Open since August 2010, the property is said to enjoy an average monthly footfall of more than 1 million. Popular international and local brands at the Grand Canyon Mall include Carrefour, Poly Cinema, H&M, Gap, Sephora and Watsons.

The acquisition is expected to cost about S$367.5 million including related acquisition costs. This is a slightly below the independently-appraised value of the mall which stands at S$369.4 million. The acquisition is expected to be completed by the end of the year.

Since the announcement of its intention to acquire the mall last July, CRCT has worked with Capital Airport Real Estate Group to improve the mall’s occupancy rate from 92.7 per cent to 95.7 per cent and recorded very strong rental reversions. The REIT has also indicated that it has plans to bring in a greater variety of retailers and maximise the potential of the property once acquisition is complete.

Units of CRCT are currently trading slightly lower from the previous day’s close at S$1.38.