Singapore’s sovereign wealth fund GIC has acquired Beijing’s LG Twin Towers from South Korean conglomerate LG Group for over 8 billion yuan ($1.15 billion).
Located in the Guomao central business district in Beijing, the asset is an integrated development that comprises two Grade-A office towers and a retail podium, GIC announced in a statement on Wednesday.
The development has a total gross floor area (GFA) of 140,680 square metres and a diversified tenant mix. It is located along Chang’an Avenue, a key arterial road in the capital city, and offers direct access to Yong’anli subway station.
“China remains a key focus for us, and this investment reflects our continued commitment to identifying attractive opportunities in this market. We expect this landmark development to benefit from the strong demand for offices in central Beijing and generate resilient returns over the long term,” said GIC Real Estate chief investment officer Lee Kok Sun, in the statement.
GIC, which owns over $100 billion in assets under management (AUM), has been investing in China for more than two decades.
Established in 1981, Singapore-based GIC invests across a wide range of asset classes such as real estate, private equity, equities and fixed income. The company has investments in over 40 countries.
It claimed an annualised rate of return of 3.4 per cent above global inflation over the 20-year period ended March 31, 2019.
The company employs over 1,500 people across 10 offices in key financial cities worldwide.