SINGAPORE (Oct 16): Alpha Investment Partners, the private fund management arm of Keppel Capital, is partnering with Allianz Real Estate to jointly acquire an 85% stake in a Grade A office complex building in Beijing, China.
In a bourse filing on Tuesday, Keppel Corp reported that the remaining 15% of the complex, Ronsin Technology Center, will continue to be held by the seller D&J China, a leading integrated business park and suburban office operator.
Alpha, which was acting on behalf of its managed funds which include Alpha Asia Macro Trends Fund III (AAMTF III), had entered into agreements with Allianz, which is also an investor of AAMTF III.
A joint venture company will be set up for the deal. The Alpha-managed funds will hold a 38% stake while Allianz will hold a 62% stake. The acquisition is slated for completion in 4Q19, and the property will be jointly managed by Alpha, Allianz and D&J China.
Completed in March 2018, Rosin Technology Center has a total net leasable area of approximately 131,000 sqm and has an occupancy rate of 70%. It also comprises six office towers and a retail podium.
“The acquisition of Ronsin Technology Center will be AAMTF III’s first investment in Beijing and is in line with our strategy to expand Keppel Capital’s presence in China. This follows on the back of AAMTF III and Keppel Land China’s acquisition of Yi Fang Tower in Shanghai earlier this year,” says Christina Tan, CEO of Keppel Capital, the asset management arm of Keppel Corp.
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“This is a continuation of Allianz’s investment strategy to allocate 50-60% of its Asia Pacific real estate exposure to fast-growing markets such as China and India. Beijing is demonstrating strong resilience to current volatility in the global markets while Wangjing is a well-established sub-market for technology and innovation firms, which is experiencing persistent demand with tight supply,” says Rushabh Desai, Allianz Real Estate's Asia-Pacific CEO.
As at 11.53am, shares in Keppel Corp are trading 3 cents higher at $5.97.
