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Keppel Capital unit, Allianz to buy stake in Beijing office complex for S$1.3b

Ronsin Technology Center 2.JPG
Ronsin Technology Center was completed in March 2018 and comprises six office towers and a retail podium located above the Laiguangying subway station in Beijing’s Wangjing sub-district.

KEPPEL Capital unit Alpha Investment Partners is jointly acquiring an 85 per cent interest in a Grade A office complex in Beijing with Allianz Real Estate for S$1.3 billion.

The remaining 15 per cent stake in the complex – called Ronsin Technology Center – will continue to be held by seller D&J China, which will now manage the property together with Alpha and Allianz, Keppel Corp said on Wednesday.

Ronsin Technology Center was completed in March 2018 and comprises six office towers and a retail podium located above the Laiguangying subway station in Beijing’s Wangjing sub-district.

With a total net leasable area of about 131,000 square metres, the property has an occupancy rate of 70 per cent.

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Alpha, which was acting on behalf of its managed funds which include Alpha Asia Macro Trends Fund III (AAMTF III), had entered into agreements with Allianz, which is also an investor of AAMTF III.

A joint venture (JV) company will be set up for the deal, in which the Alpha-managed funds will take a 38 per cent stake, while Allianz will subscribe for a 62 per cent share.

Alpha is the private fund management arm of Keppel Capital.

Keppel Capital chief executive Christina Tan said the acquisition of Ronsin Technology Center will be AAMTF III’s first investment in Beijing, and also follows AAMTF III and Keppel Land China’s acquisition of Yi Fang Tower in Shanghai earlier this year.

"Our experienced team is well-positioned to create value and drive returns for our investors through innovative asset management and proactive leasing strategies," she added.

Rushabh Desai, Allianz Real Estate's Asia-Pacific CEO, said the move is a continuation of Allianz’s investment strategy to allocate 50 to 60 per cent of its Asia-Pacific real estate exposure to fast-growing markets such as China and India.

"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," he said.

The acquisition is expected to be completed in the fourth quarter of 2019.

Keppel Corp shares closed at S$5.94 on Tuesday, down three Singapore cents or 0.5 per cent.