Keppel unit, Allianz RE team up to buy Beijing property for $948m

Beijing, China. Photo: zhang kaiyv/unsplash

Alpha Investment Partners (Alpha), the private fund management arm of Singapore-based Keppel Capital, has partnered with Allianz Real Estate to acquire majority interest in a Grade A office complex in Beijing for S$1.3 billion ($948 million).

In a disclosure to the Singapore Exchange on Wednesday, Keppel said Alpha and Allianz will jointly acquire an 85-per cent interest in Ronsin Technology Center, a S$1.5-billion ($1.1 billion) Grade A office complex in the Wangjing sub-district in Beijing.

The Alpha-Allianz joint venture will acquire the stake from D&J China, a Warburg Pincus-founded business park and suburban office space operator. D&J will hold the remaining 15-per cent interest in the complex.

The property will be managed by Alpha, Allianz, and D&J China when the acquisition is completed in the fourth quarter of 2019.

Completed in March 2018, Ronsin Technology Center comprises six office towers and a retail podium. The property, located above the Laiguangying subway station in Beijing’s Wangjing sub-district, has a total net leasable area of approximately 131,000 square meters. It has an occupancy rate of 70 per cent.

Alpha will hold a 38-per cent stake while Allianz will take 62 per cent in the joint venture company that will acquire the 85-per cent interest in the property. Alpha will finance the investment through its funds under management, including the Alpha Asia Macro Trends Fund III (AAMTF III).

AAMTF III, including co-investments, closed at $1.1 billion in January, exceeding its initial target. The fund is the third value-add pan-Asian fund in the Alpha Asia Macro Trends series, which was launched in 2007 with the target of investing in multi-asset classes across key gateway cities in the region.

Allianz is also an investor in AAMTF III.

In September 2018, the fund partnered with Allianz Real Estate along with another undisclosed investor to acquire a building in Shanghai’s Bay Valley Business Park from CITIC Capital at investment consideration of approximately $48 million.

The acquisition of Ronsin Technology Center will be AAMTF III’s first investment in Beijing and follows the fund’s and Keppel Land China’s acquisition of Yi Fang Tower in Shanghai earlier this year, according to Keppel Capital CEO Christina Tan.

For Allianz Real Estate, the acquisition is a continuation of its investment strategy to allocate 50-60 per cent of its Asia Pacific real estate exposure to fast-growing markets such as China and India, according to Rushabh Desai, the firm’s Asia-Pacific CEO.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.