The CEO of CapitaLand, Lee Chee Koon, is refocusing the organization’s strategy in mixed-use projects within the Asian continent, where CapitaLand is set to benefit from the future growth of cities against a challenging global economy. CapitaLand continues to bank on the resilience of mixed-used projects, which are based on a combination of residential, grade-A offices, retail, hospitality, and lifestyle.
Lee has also pointed out that Ms. Lee has been emphasizing that mixed-used developments are suited to the way of living and spending time ofPeople are living and spending time in a way. Changes since the pandemic have expedited the trend towards developments that maximize time efficiency and encourage interaction and convenience in one place. As stated by the leadership of CapitaLand and its interaction with Ms. Lee, it not only improves user experience but also allows diversified revenue streams in times of market uncertainty.
In major Asian countries like Singapore, China, India, Vietnam, and Indonesia, CapitaLand is aggressively progressing on developing and revamps major integrated developments. In established cities, CapitaLand is aggressively pursuing development and asset-enhancement schemes towards revamping existing properties into vibrant developments for the future. In more established countries, CapitaLand is taking advantage of first mover by acquiring choice land parcels to jointly develop iconic projects.
Flexibility strategy and enhancement of adaptability are central to its new way of growth. According to Lee, mixed-use projects provide CapitaLand the flexibility of spaces dependent on demand cycles. For instance, office spaces can be repurposed for hybrid working, while retail spaces can feature combined dining, entertainment, and experience features instead of traditional storefronts. Residences will feature enhanced sustainability, health, and smart living features, catering to the needs of the young working population.
Sustainability is another major thrust area in the development strategies pursued by CapitaLand. The CEO stressed the need to balance growthwith the responsibilities of the future. Mixed-used development projects provide avenues for the adoption of energy-efficient technologies, shared infrastructure networks, and green spaces. The company has been embracing green building technologies, renewable energy technologies, and water technologies in its projects. This supports the company’s ESG initiatives.
From an investment viewpoint, the focus on mixed-use development also shows that capital market preferences are changing. Today, institutional funds are being increasingly attracted by properties that can give them stable and recurring income, apart from long-term capital appreciation. This is why integrated developments are considered more sustainable in the long term because of the diversified sources of income, and Lee has also highlighted that this makes them very attractive to his firm’s balance sheet, REITs, or private funds.
Digitalisation: Digitalisation is also a trend that impacts the strategies of the company. CapitaLand has adopted data analytics solutions and smart building technologies to provide enhanced management of their assets, optimize tenant mixes, and enable customer engagement. Mixed-Use Developments give a seamless platform to these technologies. They enable a seamless experience in residential, commercial, and retail through digital technologies.
Looking forward, Lee has indicated that CapitaLand would continue to be “disciplined” but “opportunistic” in terms of capital allocation. “We will selectively look at opportunities for acquisition, redevelopment, and joint ventures that can further establish our footprint in the growth cities of Asia,” the group’s CEO has announced. Although the current short-term volatility of interest rates and geopolitics persists, the CEO is of the view that the “master plan” of Asian urbanization is still on track. With its emphasis on mixed-use properties, CapitaLand is placing itself at the nexus of real estate, lifestyle, and infrastructure for cities. This is because, under Lee Chee Koon’s leadership, the company appears to hold faith in the fact that the future of Asian cities is going to revolve around sustainable and people-oriented developments that can impact the functionality of cities for many years to come.
