Swiss private equity firm Partners Group announced that it has teamed up with a consortium of investors to acquire a majority stake in Dinghao Plaza, a large mixed-use office and retail complex in Beijing, for $1.34 billion.
According to a statement, the PE firm has partnered with a consortium that includes Ascent Real Estate Investors, Sigma Delta Partners Investment, and the Family Office Company in acquiring the mixed-use complex in Beijing’s Zhongguancun area, known as the Silicon Valley of China, from Taiwanese developer Sino Horizon Holdings Ltd.
Built in 2003, Dinghao Plaza currently contains a large retail podium and two office towers. It comprises a 176,976-square-meter mixed-use building complex with direct underground access to the ZGC metro station.
“Dinghao Plaza is ideally located in ZGC, Beijing’s vibrant tech and media area, where demand for large, contiguous, and premium office space is high and supported by the strong growth of China’s technological sector,” said Partners Group managing director for Private Real Estate Asia Rahul Ghai.
He added that the consortium plans to reposition under-used retail space into office use and refurbish the existing office space across the two towers to grade-A standard. The multi-year value creation program will transform Dinghao Plaza into a core real estate asset, Ghai said.
“The acquisition of Dinghao Plaza is a great fit with our longstanding ‘buy, fix and sell’ strategy, whereby we seek out properties in prime locations that can benefit from repositioning with sufficient time and capital,” he said.
The acquisition comes after Partners Group was reported in October to be planning to raise as much as $5.8 billion for its fourth buyout fund. According to sources quoted by Bloomberg the firm plans to start raising the new fund – Partners Group Direct Equity 2019 – as early as this year.
Partners Group has $83 billion in assets under management and more than 1,200 professionals across 19 offices worldwide. Based in Switzerland, the firm has invested $15 billion in private real estate and acquired more than 200 property developments globally, according to its website.