SINGAPORE: Alpha Investment Partners (Alpha) has entered into agreements with Allianz Real Estate to jointly acquire an 85% interest in Ronsin Technology Center, a Grade A office complex valued at approximately S$1.5 billion in the Wangjing sub-district in Beijing, China, for an aggregate consideration of approximately S$1.3billion.
The remaining 15% stake in the office complex will continue to be held by the seller, D&J China. The Alpha-managed funds and Allianz will subscribe for 38% and 62% stakes, respectively in the joint venture company that will acquire the 85% interest in the property.
Allianz is also an investor of AAMTF III, which is managed by Alpha, the private fund management arm of Keppel Capital. The property will be managed by Alpha, Allianz and D&J China. The acquisition is expected to be completed in the fourth quarter of 2019.
Christina Tan, CEO of Keppel Capital ,said, “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. Our experienced team is well-positioned to create value and drive returns for our investors through innovative asset management and proactive leasing strategies. We are delighted to expand our partnership with Allianz in the region.”
Rushabh Desai, Asia-Pacific CEO of Allianz Real Estate, said “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.”
Completed in March 2018, Ronsin Technology Center is a grade A office complex that comprises six office towers and a retail podium. The AAMTF series is designed to ride on mega trends driving long-term growth in Asia-Pacific, which include urbanisation, growing consumerism and intra-regional tourism. AAMTF III is the third value-add Pan-Asian fund in this flagship series.