SINGAPORE - Singapore's Real estate investment trust Mapletree has acquired a premium business park property in Shanghai from MSREF VII Leaphart BV for an estimated 1,840.3 million yuan (S$401.8 million), expanding its footprint in the China.
This translates into a purchase consideration of 1,888.1 million renminbi (or approximately S$412.2 million), which comprises the property purchase price for Sandhill Plaza and the estimated working capital adjustments.
Sandhill Plaza has been developed on 23,203 square metres in Zhangjiang Hi-Tech Park, known as the 'Silicon Valley' of Shanghai falling into its Free Trade Zone, a company release said on Monday. The Plaza comprises a 20-storey tower, seven blocks of 3-storey buildings and two basement levels of car park.
Mapletree Greater China Commercial Trust (MGCCT) will have total assets of S$5,916.2 million with this acquisition, a total increase of 7.8 per cent since March 31, 2015. It's lettable area will also increase by 37 per cent from 1.9 million sq ft to 2.6 million sq ft.
"With its good location, quality building specifications, high occupancy rate, strong tenancy profile, and attractive rental growth opportunity within a strong rental market, the acquisition of Sandhill Plaza is in line with MGCCT's strategy to invest in best-in-class real estate assets for commercial purposes in the Greater China region," MGCCT chief executive Ms Cindy Chow said.
MGCCT commercial Reit invests in a diversified portfolio of income-producing real estate in the Greater China region, which is used primarily for commercial purposes as well as real estate-related assets.