Allianz buy Shanghai Office building from Citic for $90m

Allianz announced today that it has partnered with Alpha Asia Macro Trends Fund III (“AAMTF III”), a private equity investment fund managed by Singapore’s Alpha Investment Partners, and an unnamed co-investor to acquire an office park property in northern Shanghai.

The European financial giant and the private equity unit of Singaporean conglomerate Keppel Corporation have agreed to purchase Bay Valley C6, a Grade A office asset in Shanghai’s Bay Valley Business Park from CITIC Capital for an equity consideration for $48 million, according to a statement by Keppel Corporation.

Sources familiar with the transaction told Mingtiandi that the 19,768 square metre property was valued at RMB 28,500 ($4,4158) per square metre in the deal.

In a statement, Allianz, which purchased the asset through its Allianz Real Estate unit, indicated that the gross asset value of the 13-storey property is approximately $90 million.

According to a statement from Keppel Corporation, the parent of Alpha Investment Partners, the fund paid an equity consideration of of $48 million for the asset.

The capital markets team at Cushman & Wakefield brokered the transaction on behalf of CITIC Capital, according to sources familiar with the deal.

According to an announcement by Keppel Corporation, Alpha Asia Macro Trends Fund III (AAMTF III) is taking a 48 percent stake in the asset, while Allianz will have a 41.5 per cent holding and the remaining 10.5 percent stake goes to an unnamed investor in the AAMTF III fund.

“This transaction is aligned with our approach of investing in China’s new economy, which has successfully transformed from a manufacturing-driven economy to a more balanced service-based economy,” Rush Desai, the Asia Pacific CEO for Allianz Real Estate said in the statement.

Ref : Property Report