A group of investors led by Singaporean asset manager Keppel Capital has agreed to buy the Yi Fang Tower in Shanghai’s North Bund area for US$685m (RMB 4.6bn).
The commercial property features two 18-storey towers comprising 47,500 sq.m. of office and a 26,900 sq.m. retail podium, Keppel said in an announcement.
The consortium bought the newly built asset from Yi Fang Jing Yi Enterprise under an agreement where Keppel Capital will own a 42.1% stake through its Alpha Asia Macro Trends fund III.
Keppel Land China, a subsidiary of Keppel Corporation, will hold a 29.8% interest in the complex and the remainder will be held by other co-investors.
“Yi Fang Tower is a quality asset that is well-connected to Shanghai’s core central business districts and is expected to meet growing demand from quality tenants in the professional services and financial sectors,” said Keppel Capital CEO (China) Eric Goh.
Situated in the Hongkou district, the property has direct access to the International Cruise station of Shanghai’s Metro and will be near the Beihung Tunnel when it opens in 2020.
“We have closed deals in Shanghai amounting to more than RMB 14.5bn to-date for our AAMTF series as well as for co-investors,” continued Goh.
The transaction marks the third Shanghai deal that Keppel Land and Keppel Capital have worked together on following its investments in Life Hub @ Jinqiao and Trinity Tower.
The acquisition is expected to be completed in 2Q19.
Keppel Capital, which is the asset management arm of Keppel Corporation, has about US$21.4bn (S$29bn) of assets under management. It owns real estate, infrastructure and data centre properties.