The venture features the 24,883 sq.m. Ascendas Innovation Place property on Jiujiang Road near the People’s Square and the 44,003 sq.m. Ascendas Plaza building on Tianyaoqiao Road in Xujiahui, according to an Ascendas-Singbridge announcement.
Ascendas-Singbridge and Mitsui will co-own the assets through a 55:45 partnership, with the Japanese company planning to invest ¥18bn (c. US$162m) into the venture, according to a separate statement.
The agreement will see both companies collaborate in the development and upgrading of both buildings, as well as other areas including investments and leasing.
The 27-storey Ascendas Plaza asset, which is currently Ascendas-Singbridge’s China headquarters, is undergoing refurbishments that are scheduled for completion in the second quarter of this year.
Ascendas Innovation Place completed a series of refurbishment works in November last year.
“We are pleased to enter into this new partnership with Mitsui, which will position us well to capture the growing demand for modern, quality workspaces in China,” said Ascendas-Singbridge CIO He Jihong.
“This year marks the 7th anniversary of our partnership with Ascendas-Singbridge Group – a collaboration that began with our joint development of Galaxis in Fusionopolis, Singapore,” said Kain Matsumoto, general manager, real estate business division at Mitsui.
The partnership is the fourth collaboration between the two businesses in Asia, adding to the redevelopment of 79 Robinson Road in Singapore’s CBD and the Nusajaya Tech Park in Malaysia.
Ascendas-Singbridge specialises in urban development and business spaces, and has more than S$20bn of assets under management.