Completed in Q4 2015, SOHO Hongkou has a high occupancy rate of 97 per cent as at March 2017, with tenants including Panasonic and China Pacific Insurance.
Keppel Land China and Alpha Investment Partners are wholly owned units of Keppel Land and Keppel Capital Holdings respectively.
Christina Ta, CEO of Keppel Capital and Managing Director of Alpha, added, “Being the financial and commercial hub of China, Shanghai has seen the need for more high quality and well-located developments in the city. We are confident that Alpha’s AAMTFIII is well-positioned to capture opportunities in this fast-growing market that is driven by sustainable urbanisation trends.”
“The strategic partnership between Alpha and Keppel Land China is also a testament to our commitment to grow our asset management business and achieve the best returns for our investors. In keeping with our disciplined investment approach, we will undertake the appropriate value-adding efforts that will not only preserve but enhance the value of the asset over the long term,” she adds.
Keppel Land China, through wholly owned Joysville Investment, has entered into a joint venture agreement to acquire a 30 per cent stake in Vision (III) Pte Ltd which holds an indirect 100 per cent stake in SOHO Hongkou, located in Hongkou District.
Alpha’s Alpha Asia Macro Trends Fund (AAMTF) III will hold a 40 per cent stake while the remaining 30 per cent stake will be held by its co-investor.
SOHO Hongkou offers a total leasable area (GLA) of 70,042 square metres which comprises 65,304 sq m and 4,738 sq m of office and retail space respectively.
Ang Wee Gee, CEO of Keppel Land and Chairman of Keppel Land China, said, “This is the second time that Keppel Land China and Alpha are harnessing strengths across the Keppel Group and collaborating to acquire a premium property in a strategic location in Shanghai, after Life Hub @ Jinqiao. This acquisition is also in line with our strategy to scale up in high‐growth cities, such as Shanghai, where Keppel Land China has established a firm foothold.”
In September 2016, Keppel Land China and Alpha divested a mixed-use development, Life Hub @ Jinqiao, in Shanghai and achieved an internal rate of return of over 20 per cent.