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Keppel to acquire commercial tower in Beijing for 555 million yuan

KEPPEL Land China will acquire a completed commercial property in Haidian District, Beijing, for an aggregate cash consideration of 555 million yuan (S$111 million).

The property is owned by Beijing Chang Sheng Business Consulting Co, and Keppel Land China has agreed with A Li Yun Shan (Beijing) Business Consulting Co to purchase the full equity interest in the building owner.

The transaction is expected to be completed in the first quarter of 2019.

The property is located in the Greater Wuluju Area of Haidian District which is China's first information technology base and home to Zhongguancun, widely known as China’s Silicon Valley, Keppel Corp said on Monday.

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Also located in the vicinity are the headquarters of the China State Administration of Foreign Experts Affairs and China National Space Administration, and top universities such as Renmin University of China, Beijing Foreign Studies University and Beijing Jiaotong University.

The property comprises nine storeys of office space covering 8,532 sq m of gross floor area, two storeys of retail space (2,104 sq m of gross floor area) and 23 car park lots (992 sq m of gross floor area).

As at September 2018, it was about 97 per cent occupied, Keppel Corp said.

Ben Lee, president of Keppel Land China, said: “The acquisition is in line with our strategy to grow our commercial portfolio in China, with a focus on first-tier cities. We are confident that this strategically located property will meet the rising demand for prime office and retail space in Beijing.

“Securing the project is opportune considering that it is a completed asset enjoying almost full occupancy and in a city where supply for quality commercial developments is limited.”