Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Join the Mingtiandi Proptech Forum 2021
      • Asia Proptech 2021: COVID-19 Accelerates a Trend
      • Panel Talk: Tech Adoption in Logistics Real Estate
    • Promote Your Brand with the Mingtiandi Proptech Forum 2021
    • 2021 Mingtiandi Event Calendar
    • More Events
  • MTD TV
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Advertise

Allianz, Alpha Buy Shanghai Office Building From CITIC for $90M

2018/09/14 by Michael Cole Leave a Comment

Bay Valley Shanghai

A facility at Shanghai’s Bay Valley (Image: 10 Design)

Allianz announced today that it has partnered with Alpha Asia Macro Trends Fund III (“AAMTF III”), a private equity investment fund managed by Singapore’s Alpha Investment Partners, and an unnamed co-investor to acquire an office park property in northern Shanghai.

The European financial giant and the private equity unit of Singaporean conglomerate Keppel Corporation have agreed to purchase Bay Valley C6, a Grade A office asset in Shanghai’s Bay Valley Business Park from CITIC Capital for an equity consideration for $48 million, according to a statement by Keppel Corporation.

Sources familiar with the transaction told Mingtiandi that the 19,768 square metre property was valued at RMB 28,500 ($4,4158) per square metre in the deal.

In a statement, Allianz, which purchased the asset through its Allianz Real Estate unit, indicated that the gross asset value of the 13-storey property is approximately $90 million. According to a statement from Keppel Corporation, the parent of Alpha Investment Partners, the fund paid an equity consideration of of $48 million for the asset.

The capital markets team at Cushman & Wakefield brokered the transaction on behalf of CITIC Capital, according to sources familiar with the deal.

According to an announcement by Keppel Corporation, Alpha Asia Macro Trends Fund III (AAMTF III) is taking a 48 percent stake in the asset, while Allianz will have a 41.5 per cent holding and the remaining 10.5 percent stake goes to an unnamed investor in the  AAMTF III fund.

Betting on China’s New Economy

Rush Desai of Allianz

Rush Desai of Allianz

“This transaction is aligned with our approach of investing in China’s new economy, which has successfully transformed from a manufacturing-driven economy to a more balanced service-based economy,” Rush Desai, the Asia Pacific CEO for Allianz Real Estate said in the statement.

Bay Valley C6 is a Grade A office property located in the Bay Valley Business Park, in the New Jiangwan Town section of Yangpu district. Situated to the north of Shanghai’s downtown core, Yangpu, which is home to the new campus of the city’s elite Fudan University, which sits adjacent to the Bay Valley facility, has become a popular option for business park developments on the west side of the Huangpu River. Tishman Speyer’s project The Springs is also located in Yangpu and Shui On Land chose the district when it developed its KIC business park more than a decade ago.

Yangpu Business Park Becomes Investment Target

Bay Valley C6 is said to have “seen positive leasing demand,” according to the statement. “The acquisition of the strategically located Bay Valley C6, which is seeing growing demand from companies in the biomedical and technology, media and telecommunications sectors, is an excellent addition to AAMTF III, given the positive outlook of Shanghai’s technology industry,” Eric Goh, CEO for China at Keppel Capital, the parent entity of Alpha Investment Partners said in a statement.

No further details were provided on leasing of the project.

During the second quarter of this year, IDG Capital purchased Bay Valley B7 in the same complex from Shanghai SMI Holding, which developed Bay Valley, for RMB 726 million. That 28,000 square metre building was vacant when it was sold for the equivalent of RMB 25,900 per square metre, according to data from Savills.

Local investment firm Top Spring also chose Bay Valley for a series of acquisitions last year, picking up approximately 100,000 square metres of space in the project through its acquisitions of the A4/C4 and C7 buildings for a combined RMB 2.4 billion during the third quarter of last year.

The business park project was originally developed by what is now SMI Group, or Shanghai Municipal Investment Group, Corp starting in 2014.

Allianz Ties Up With Keppel Again

The acquisition marks the second time that Allianz has tied up with the Alpha-managed fund for an investment in China, after the investment duo teamed up with Alpha’s developer affiliate Keppel Land to purchase Soho Hongkou from Beijing-based Soho China for RMB 3.6 billion in June of 2017.

Allianz Real Estate has become increasingly active in the China real estate market since Rush Desai took the top APAC position with the asset manager just over two years ago.

In July the German finance firm’s real estate division purchased a business park asset in Beijing’s Zhongguancun area from Goldman Sachs and KaiLong for a price reported to be between $185 million and $196 million.

Just three month earlier, Allianz real estate had teamed up with a fund managed by Hong Kong’s Gaw Capital Partners to purchase a pair of buildings at Sky Soho in Shanghai’s Changning district for RMB 5.01 billion in April of this year.

Note: This story updates an earlier account which stated the transaction price as $48 million. The $48 million figure represents the equity paid by the buyers and does not take into account any debt financing for the deal.

Related Stories

  • Keppel Land, Alpha Acquire RMB 4.6B Shanghai Yi Fang TowerKeppel Land, Alpha Acquire RMB 4.6B Shanghai Yi Fang Tower
  • Keppel Aims to Raise $1B for Alpha Asia Fund IVKeppel Aims to Raise $1B for Alpha Asia Fund IV
  • Allianz, Alpha JV Buys 85% Stake in Beijing Commercial Complex From D&J China for €1BAllianz, Alpha JV Buys 85% Stake in Beijing Commercial Complex From D&J China for €1B
  • LaSalle Buys Office Tower in Shanghai’s Hongkou District From AlphaLaSalle Buys Office Tower in Shanghai’s Hongkou District From Alpha

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Finance Tagged With: AAMTF III, Allianz, Alpha Investment Partners, cm-ml, daily-sp, Featured, highlight, Keppel Capital, Shanghai

Proptech Registration Jumbo

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Benoy banner

Get Mingtiandi Delivered

Proptech Registration Column

Latest Stories

Ong Pang Aik Lian Beng

Lian Beng Consortium Buying Breadtalk HQ in Singapore for $88.7M

Claire Cormier Thielke, Managin Director, Asia Pacific, Hines

How COVID-19 Ramped Up Proptech Adoption: Watch on MTD TV

managing director for fund management at GLP SG

GLP Raises Additional €500M for European Core Logistics Fund

GLP Kicks Off Construction on Four UK Projects and More Asia Real Estate Headlines

Sponsored Features

CK Lau

Asia Pacific Logistics Sector: Increasingly Varied Sector Requires Multiple Approaches Sponsored Feature

COVID-19 Uncertainty Creates New Priorities for Real Estate Investors Sponsored Feature

Urban planning

Urban Placemaking with Big Data and Little People Sponsored Feature

Hines’ One Museum Place Celebrates One Year of a New Shanghai Landmark Sponsored Feature

More Sponsored Features>>

MTD-QR-Code-320

Top Stories

KKR Announces $1.7B Final Closing for First Dedicated Asia Real Estate FundKKR Announces $1.7B Final Closing for First Dedicated Asia Real Estate Fund

Lian Beng Consortium Buying Breadtalk HQ in Singapore for $88.7MLian Beng Consortium Buying Breadtalk HQ in Singapore for $88.7M

Blackstone Buying Disney Building in Singapore’s One North for $135MBlackstone Buying Disney Building in Singapore's One North for $135M

GLP Kicks Off Construction on Four UK Projects and More Asia Real Estate…GLP Kicks Off Construction on Four UK Projects and More Asia Real Estate Headlines


Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • Events
    • Join the Mingtiandi Proptech Forum 2021
      • Asia Proptech 2021: COVID-19 Accelerates a Trend
      • Panel Talk: Tech Adoption in Logistics Real Estate
    • Promote Your Brand with the Mingtiandi Proptech Forum 2021
    • 2021 Mingtiandi Event Calendar
    • More Events
  • MTD TV
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Advertise

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Newsletter Subscription
  • Terms of Use
  • Privacy
  • Advertise
  • Join the Mingtiandi Team

We use cookies in accordance with our Privacy policy to provide the best user experience on Mingtiandi and to safeguard user data. By continuing to browse you consent to the policy. AcceptRefuse