Keppel Land China entered a deal to acquire all of Beijing Chang Sheng Business Consulting, which owns a completed commerical property in Haidian District, Beijing, for 555 million yuan, or around S$111 million, in cash from A Li Yun Shan (Beijing) Business Consulting, Keppel said on Monday.
The deal is expected to be completed in the first quarter of this year, it said in a filing to SGX on Monday.
The property is located in the Greater Wuluju Area of Haidian District, which is home to Zhongguancun, which is considered China’s Silicon Valley, the filing said, adding it was also near several universities and government offices as well as Subway Line 6.
Ben Lee, president of Keppel Land China, said the deal was in line with the company’s strategy to boost its mainland portfolio of commercial properties, with a focus on tier-one 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,” Lee said in the statement.
The property, which was around 97 percent occupied as of September, has nine storeys of office space, two storeys of retail space and 23 car park lots, it said.
Keppel Land China, which is a wholly owned subsidiary of Keppel Land, has entered the deal via its wholly owned subsidiary Tosalco, it said. Keppel Land is the property arm of Keppel Corp.
A Li Yun Shan (Beijing) Business Consulting is a wholly owned subsidiary of HKEx-listed Besunyen Holdings, the filing said.