Mapletree India China Fund, a private equity real estate fund managed by Mapletree of Singapore is acquiring the Silver Tower building near Shanghai’s Huaihai Road for RMB 2.4 billion according to industry reports.
Mapletree is buying the mixed-use complex in Shanghai’s central business district, also known as the Yongyin Building, from U.S. private equity fund Pacific Esplanade. According to government data, Silver Tower is part of a mixed use project with 28 floors of serviced-apartments (Silver Court), 16 floors of office space, and a five floor retail podium. Based on a total construction area of 62,000 square meters MapleTree paid approximately RMB 38,700 per square meter to acquire the property.
The deal marks the fund’s first foray into the Shanghai commercial property market since it was formed 3 years ago to focus on potential property projects in India and China. The fund has already invested in residential, commercial and mixed-use property projects in Beijing, Xi’an and Foshan. Those projects are located in first and second-tier cities, the target markets for the Mapletree India-China Fund, which continues to seek more suitable projects, according to Loh Shyh, head of Mapletree Investments in China.
Loh told reporters during the inauguration of a Nanhai, Foshan-based commercial property project in June that Mapletree Investments was preparing to launch a second fund valued at $1 billion that would primarily focus on China.
At the end of July, Mapletree announced it would buy the Festival Walk mall in Hong Kong from Swire Pacific Ltd. (0019.HK) for HK$18.8 billion.
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