CapitaMalls Asia sees 2012 as turning point in China

HONG KONG Feb 10 (Reuters) - Shopping centre developer CapitaMalls Asia said more than half of its malls in China would be up and running in 2012, marking an "inflection point" for the company, which has been investing heavily to develop the projects.

"It's the first time the majority of our malls are operating," Chief Executive Officer Lim Beng Chee said in a briefing to investors, adding that should improve the balance of the business between development and operations.

"Investors had some concern we could be increasing our financial cost too much," he said.

The company on Friday reported that after-tax profit hit S$456 million ($365.5 million)for the fiscal 2011 year, a rise of 8.1 percent compared with the previous year.

CapitaMalls Asia said it planned to open seven malls in China this year, and two more in Singapore.

The company has grown from seven malls in 2005 to 56, with S$20.7 billion ($16.6 billion) in assets under management. China now accounts for 49 percent of the company's property holdings, exceeding the 40 percent it has in Singapore.

It also owns property in India, Malaysia and Japan.

"Generally we are starting to see China delivering very strongly," Chief Financial Officer Ng Kok Siong said in the briefing.

Parent CapitaLand plans to spin off the developed projects of both CapitaLand and CapitaMalls Asia into real estate investment trusts, once China approves REITs.

CapitaMalls Asia shares closed down 2.0 percent on Friday ahead of its results, which came after the close of trade in Singapore. ($1 = 1.2476 Singapore dollars) (Reporting by Alex Frew McMillan; Editing by Helen Massy-Beresford)