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

GIC-CapitaLand JV Buying Shanghai Mixed-Use Project for $1.85B

2018/11/13 by Jan Kot Leave a Comment

Under Lee Chee Koon, CapitaLand adds to the largest portfolio among foreign developers in China

Singapore’s CapitaLand announced on Tuesday that its Raffles City China Investment Partners III (RCCIP III) fund has formed a 50:50 joint venture with Singapore’s sovereign wealth fund GIC to acquire the Star Harbour International Center project (上海星外滩) in Shanghai’s Hongkou district for RMB 12.8 billion (about $1.85 billion).

The announcement ended a month of speculation regarding the potential acquisition of the 1.5 million square metre (16 million square foot) project after Mingtiandi first reported the potential purchase from Shanghai Port Group in October.

The project, which is currently nearing completion and which CapitaLand indicated will be opened in phases starting in the second half of next year, will become CapitaLand’s third Raffles City integrated development in Shanghai, its ninth in China and the 10th globally.

Singapore Giants Build Mainland Portfolios

“This prime asset will begin operations in phases from the second half of 2019, giving us speed to market in the competitive Shanghai market, which continues to power ahead,” said Lee Chee Koon, the group’s CEO. “In line with our long-term belief in China, we will stay invested through market cycles to reap the compounding effects on our investments.”

The riverfront development, which occupies a 4.05-hectare commercial site in an area near the Huangpu river now marketed as Shanghai’s north bund, consists of a pair of 50-storey Grade A office towers which are linked at the base by a seven-storey shopping mall. At 263 metres tall, the project is the tallest twin-tower office complex in Shanghai, and overlooks both the Bund and the Lujiazui financial district. The future Raffles City project connects directly to Shanghai’s metro Line 12 as well as to the upcoming Line 19.

“The property is a landmark Grade A integrated development in Shanghai’s core Central Business District,” Lee Kok Sun, chief investment officer for GIC Real Estate, said in the fund’s own statement. “We are attracted by the quality of this asset and expect it to generate steady, resilient cash-flows.”

The acquisition of the project, which measures 312,717 square metres by gross floor area, is in line with CapitaLand’s strategy of growing its portfolio by leveraging its fund management capability, the company said in its statement. The government-backed property conglomerate holds a 41.7 percent stake in RCCIP III, with the remaining interests held by investors from Asia, North America and the Middle East.

Sale Confirmed One Month After Government Filing

Today’s announcement came just over one month after Shanghai Port Group notified the Shanghai United Assets and Equity Exchange that it was listing for sale 100 percent of its equity in the project company that held its Star Harbour asset at a reserve price of approximately RMB12.79 billion.

The state-run developer’s planned sale of the landmark project came less than one year after it bought out its partner, China Jinmao Group, in what had originally been a 50:50 joint venture for just under RMB6 billion.

Future Phases Could Be on the Way

Star Harbour International Centre

The masterplan for the complex includes a set of four connected towers

According to the website of the project’s designers, US-based Pelli Clarke Pelli Architects, the master plan for the project along the city’s Dongchangzhi Road includes four contiguous buildings connected by a rooftop garden and sky bridge overlooking the Huangpu River.

As a developing area situated next to Shanghai’s core Huangpu district and across the river from Lujiazui, Hongkou district has attracted an influx of investments in recent years. In April, LaSalle Investment Management acquired the 31-storey Shanghai International Plaza for RMB2.36 billion ($376 million).

In the first nine months of 2018, the average rent of Grade A offices in Hongkou’s north bund area rose by 10 percent, quicker than the citywide growth rate which held steady over the same period, according to a recent report from CBRE.

Koon said in the statement that CapitaLand will remain on the lookout for opportunities to deploy its capital into higher-yielding assets to improve its overall returns.

CapitaLand Sticks to Major Urban Hubs

Shanghai is part of the five core city clusters under CapitaLand’s China strategy, which comprise Beijing/Tianjin, Shanghai/Hangzhou/Suzhou/Ningbo, Guangzhou/Shenzhen, Chengdu/Chongqing/Xi’an and Wuhan.

Including this latest acquisition, CapitaLand now owns and manages 20 commercial properties in Shanghai that span over 1.8 million square meters in gross floor area, of which eight are integrated developments with office and retail components.

In China this year, the Singapore government-backed firm has to-date divested close to S$2 billion worth of assets, which includes the divestment of a group of companies that held 20 non-core retail assets.  In June, it bought a RMB5.7 billion ($864 million) mixed-use site in the western Chinese municipality of Chongqing to be developed into a retail, office and residential property yielding over 2,100 homes.

Related Stories

  • CapitaLand Sells RMB 4.5B of SH Office Assets to Value-Add FundCapitaLand Sells RMB 4.5B of SH Office Assets to Value-Add Fund
  • Keppel Land, Alpha Acquire RMB 4.6B Shanghai Yi Fang TowerKeppel Land, Alpha Acquire RMB 4.6B Shanghai Yi Fang Tower
  • LaSalle Buys Office Tower in Shanghai’s Hongkou District From AlphaLaSalle Buys Office Tower in Shanghai’s Hongkou District From Alpha
  • Movie Star’s Beauty Brand Buys Shanghai Building From Tishman Speyer for RMB 1.8BMovie Star’s Beauty Brand Buys Shanghai Building From Tishman Speyer for RMB 1.8B

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Projects Tagged With: Capitaland China, CapitaLand Group, cm-ml, daily-sp, Featured, GIC, highlight, hongkou, Raffles City, Raffles City China Investment Partners III, 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.

Yardi Commercial Cafe

Get Mingtiandi Delivered

MTD Proptech Report

Latest Stories

The building that Keppel recently sold last December

Keppel to Market Seoul Office Towers for Over $200M and More Asia Real Estate Headlines

westin sacramento3

Eagle Hospitality Trust Hotels Declare Bankruptcy as Singapore REIT Collapses

Graeme Torre APG

APG Boosts Godrej Indian Office Platform to $250M First Closing

Korea’s NPS Extends Term of CIO Ahn Hyo-joon

Allianz Fund Buys Stake in SG Tower for $477M, Picks Up Shanghai Office Complex

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

Eagle Hospitality Trust Hotels Declare Bankruptcy as Singapore REIT CollapsesEagle Hospitality Trust Hotels Declare Bankruptcy as Singapore REIT Collapses

Allianz Fund Buys Stake in SG Tower for $477M, Picks Up Shanghai Office ComplexAllianz Fund Buys Stake in SG Tower for $477M, Picks Up Shanghai Office Complex

Tech Adoption in Asian Real Estate: Download the ReportTech Adoption in Asian Real Estate: Download the Report

CapitaLand Tops Out Singapore Trophy Tower, Targets Completion This YearCapitaLand Tops Out Singapore Trophy Tower, Targets Completion This Year


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