Keppel Capital, through a fund managed by its subsidiary Alpha Investment Partners, has partnered Allianz Real Estate and another co-investor to acquire a prime office building in Shanghai for about US$48 million (S$66 million).
The building, the Bay Valley C6, is located in Shanghai's Bay Valley Business Park and has a total aboveground gross floor area of 19,768 sq m.
Alpha Asia Macro Trends Fund III (AAMTF III) entered into a joint venture agreement to subscribe to a 48 per cent stake in Bay Valley C6.
Allianz, which is an investor of AAMTF III, will hold a 41.5 per cent stake and the remaining 10.5 per cent stake will be held by another investor of AAMTF III.
Mr Eric Goh, chief executive (China) of Keppel Capital, said: "The acquisition of the strategically located Bay Valley C6, which is seeing growing demand from companies in the biomedical and technology, media and telecommunications sectors, is an excellent addition to AAMTF III, given the positive outlook of Shanghai's technology industry."
Allianz Real Estate's chief executive officer for Asia-Pacific Rushabh Desai said: "This transaction is aligned with our approach of investing in China's new economy, which has successfully transformed from a manufacturing-driven economy to a more balanced service-based economy. We are also excited about the long-term prospects of Shanghai as a 24/7 gateway city."
The acquired property is less than 10 minutes' drive from Wujiaochang, and is in close proximity to the campus of Fudan University in the New Jiangwan area.
Price of the Bay Valley C6, a prime office building in Shanghai.
Its accessibility will be further enhanced when the extensions of metro line 10 as well as the Middle Ring Road-Jungong Road are completed, expected to be in end-2018.