GIC buys Beijing office complex from LG for over US$1.15bn

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Singaporean sovereign wealth fund GIC has purchased the LG Twin Towers in Beijing from South Korean conglomerate LG Group for more than RMB 8bn (US$1.15bn).

LG Twin Towers (image: GIC)

The complex features two grade-A office towers and a retail podium in the Guomao CBD, spanning 140,680 sq.m. of gross floor area, the buyer said in a statement.

The deal follows a string of investments made by GIC into Beijing and wider China, including the purchase of an office property stake in Beijing’s Lize Financial Business District late last year.

The newly acquired asset is situated along Chang’an Avenue, a main artery road in Beijing, and offers direct access to Yong’an’li subway station.

“GIC has been investing in China for more than two decades,” said GIC Real Estate CIO Lee Kok Sun.

“China remains a key focus for us, and this investment reflects our continued commitment to identifying attractive opportunities in this market.

“We expect this landmark development to benefit from the strong demand for offices in central Beijing and generate resilient returns over the long term.”

In November, the SWF bought  a 50% interest in a 42-storey grade-A office building in Beijing’s Lize Financial Business District (LFBD), giving it full ownership of the asset.

GIC has also been betting on other asset classes recently after it teamed up with Hong Kong-listed logistics property platform ESR for a US$500m logistics joint venture in China.

In August last year, GIC also partnered with data centre developer GDS to build and operate hyperscale build-to-suit data centers outside of Tier 1 cities in China.

Established in 1981, GIC invests in real estate, private equity, equities, fixed income and other asset classes and has more than US$100bn in assets under management.