Keppel units in joint venture acquire Shanghai mixed-used project for US$525m

KEPPEL Land China and Alpha Investment Partners have tied up with a co-investor to acquire an office and retail mixed-used development, SOHO Hongkou in Shanghai, China, for some US$525 million.

Keppel Land China and Alpha are wholly owned units of Keppel Land and Keppel Capital Holdings respectively.

Keppel Land China, through wholly owned Joysville Investment has entered into a joint venture agreement to acquire a 30 per cent stake in Vision (III) Pte Ltd which holds an indirect 100 per cent stake in SOHO Hongkou, located in Hongkou District.

Alpha's Alpha Asia Macro Trends Fund (AAMTF) III will hold a 40 per cent stake while the remaining 30 per cent stake will be held by its co-investor.

SOHO Hongkou offers a total leasable area (GLA) of 70,042 square metres which comprises 65,304 sq m and 4,738 sq m of office and retail space respectively.

Completed in the fourth quarter of 2015, it has a high occupancy rate of 97 per cent as at March 2017, with tenants including Panasonic and China Pacific Insurance, the company said in a statement on Monday.