Keppel Capital’s Alpha and Allianz enter JV to buy Shanghai office building for US$48 million

China yuan coins

Keppel Capital’s Alpha Investment Partners and Allianz Real Estate have tied up to buy an office building in Shanghai, China, for around US$48 million, Keppel said in an SGX filing after the market close on Thursday.

The acquisition will be made by Alpha Asia Macro Trends Fund III (AAMTF III), which is managed by Keppel Capital’s private fund management arm Alpha, it said.

AAMTF III will subscribe to a 48 percent stake in Jiangwan Valley (III), which indirectly holds all of the 13-storey Bay Valley C6 office building in the Bay Valley Business Park, the filing said.

Allianz will hold a 41.5 percent stake, while the remaining 10.5 percent stake will be held by another investor in AAMTF III, Keppel said, noting Allianz is also an investor in AAMTF III.

“The acquisition of the strategically located Bay Valley C6, which is seeing growing demand from companies in the biomedical and technology, media and telecommunications (TMT) sectors, is an excellent addition to AAMTF III, given the positive outlook of Shanghai’s technology industry,” Eric Goh, CEO for China at Keppel Capital, said in the statement.

The Bay Valley Business Park is located in the Yangpu District, which has become a new technology and entrepreneurial hub in Shanghai, the filing said.

Allianz pointed to China’s shift away from manufacturing, as well as its partnership with Keppel as reasons for its investment in the building.

““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,” Rushabh Desai, CEO for Asia Pacific at Allianz Real Estate, said in the statement, noting it was its second investment with AAMTF III in China.

The AAMTF fund series is aimed at investing in the mega trends believed to be driving long-term growth in Asia Pacific, including urbanization, growing consumerism and intra-regional tourism, it said.

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