Keppel unit to buy Beijing commercial building for $110m

Property in Haidian district, home to China's Silicon Valley

A Keppel Corporation unit is acquiring a commercial property in Beijing for 555 million yuan (S$110 million).

The block comprises nine storeys of offices covering 8,532 sq m of gross floor area, two retail floors comprising 2,104 sq m of gross floor area and 23 car parking spaces.

It was about 97 per cent occupied as of September last year.

The building is in the Greater Wuluju Area of Haidian district, China's first information technology base and home to Zhongguancun, widely known as the country's Silicon Valley.

It is directly above the Line 6 Haidian Wuluju Station, connecting it to central Beijing and Tongzhou, the capital's new municipal centre. Once new upgrades are completed by 2021, it will be a key transport hub in West Beijing.

The headquarters of the China State Administration of Foreign Experts Affairs and China National Space Administration are nearby, as are Renmin University of China, Beijing Foreign Studies University and Beijing Jiaotong University.

The deal announced yesterday involves Keppel Land China acquiring 100 per cent of Beijing Chang Sheng Business Consulting Co, which owns the property.

Keppel Land China president Ben Lee said: "The acquisition is in line with our strategy to grow our commercial portfolio in China, with a focus on first-tier cities.

"We are confident that this strategically located property will meet the rising demand for prime office and retail space in Beijing.

"Securing the project is opportune considering that it is a completed asset enjoying almost full occupancy and in a city where supply for quality commercial developments is limited."

The transaction is expected to be completed in the first quarter this year.

Last week, Keppel Land China secured a 4.7ha residential site in the Chengdu Tianfu New Area state-level development zone for a total consideration of 889.7 million yuan in a government land tender.

The site is slated to be developed into a residential community with 768 units of high-rise apartments and 96 low-rise units, and is expected to launch in the fourth quarter this year.

A version of this article appeared in the print edition of The Straits Times on January 01, 2019, with the headline 'Keppel unit to buy Beijing commercial building for $110m'. Print Edition | Subscribe