It has formed a joint venture with a fund managed by Alpha Investment Partners to acquire an 85-percent stake in an international grade-A office complex in Beijing.
Allianz Real Estate is partnering with Alpha Asia Macro Trends Fund III, a fund managed by Keppel Capital's private fund management arm Alpha Investment Partners, to acquire an 85-percent stake in Ronsin Technology Center, located in Beijing's Wangjing subdistrict with a valuation of about €1 billion ($1.10 billion), the firm announced in a press release on Wednesday.
Completed in March 2018, the office complex, which comprises six office towers and two retail podiums over its 131,000 square meters of leasable area, has an occupancy rate of about 70 percent, and is home to domestic technology and unicorn companies, the statement said.
The remaining 15 percent of the complex's ownership will be held by D&J China, the seller. Allianz will have a 62-percent share in the joint venture, and the transaction is expected to close in Q4 2019.
Growing Book of China Assets
«This is a continuation of Allianz’s investment strategy to allocate 50-60 percent of its Asia Pacific real estate exposure to fast-growing markets such as China and India,» Rushabh Desai, Asia-Pacific CEO of Allianz Real Estate, said about the deal.
«Beijing is demonstrating strong resilience to current volatility in the global markets while Wangjing is a well-established sub-market for technology and innovation firms, which is experiencing persistent demand with tight supply,» Desai added.
Desai added that the firm has expanded its team through the hire of several China experts over the past year.
