Singapore’s GIC acquires office building in Beijing’s Lize district

Beijing, China. Photo: Raj Eiamworakul/unsplash

Singapore’s sovereign wealth fund GIC has acquired a 50 per cent stake in an office building in Beijing for an undisclosed sum, according to an announcement.

The grade-A, 42-storey asset is the tallest building in Lize Financial Business District (LFBD), an emerging business hub in Beijing. Following the acquisition, the building will be wholly owned by GIC.

“This investment reflects GIC’s continued confidence in China, and commitment to acquiring quality assets with good long-term earning potential in this market,” the Singapore fund said in a statement.

While GIC did not disclose the seller, a Straits Times report said the wealth fund bought the building from Beijing Capital Land.

The deal comes shortly after GIC announced it was forming a joint venture with listed Australian property developer Charter Hall to acquire an A-grade office building in Sydney’s Parramatta central business district for an undisclosed sum. Australian media reports pegged the deal value at A$415 million ($286 million).

In August, GIC had announced its plan to acquire a 25.1 per cent stake in an Australia-based realty fund managing assets in Sydney’s central business district from Canada Pension Plan Investment Board and property developer Lendlease.