CapitaLand in JV to acquire 70% of Pufa Tower in Shanghai CBD for $546 mil

SINGAPORE (Jan 7): CapitaLand has formed a 50:50 joint venture with an unrelated third party to acquire 70% of Pufa Tower in Shanghai, China, for RMB2,752 million ($546.3 million).

Pufa Tower is 34-storey tall with three basement levels of car park. On completion of the transaction, CapitaLand and its joint venture partner will own levels 8 to 19 and levels 21 to 32 with a total gross floor area (GFA) of 41,773 sq m, as well as 61 car park lots with property title. Pufa Tower’s ground floor lobby and refuge floor on level 20 are co-owned with Shanghai Pudong Development Bank, which owns the rest of the building.

Lujiazui CBD, where Pufa Tower is located, is Shanghai’s most coveted office location for financial and professional services companies. With an unabating demand for office space and limited new supply, Lujiazui CBD commands the highest office rents in the city. In view of a sharp decline in Pudong’s office supply from 2019, office rents in Lujiazui CBD are expected to continue trending upwards over the next few years.

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