Keppel Land China to acquire Beijing commercial property for 179 million yuan

China yuan coins

Keppel Land China entered a deal to acquire all of Beijing Shunxiangren Enterprise Management from Ningbo Jiasheng Yuecheng Investment Management Center (LP) and Beijing Hanhe Investment Management for 178.6 million yuan, or around S$35.1 million, Keppel Corp. said Monday.

Beijing Shunxiangren indirectly owns a completed commercial property, Shangdi Neo, in Zhongguancun, Haidian District, Beijing, Keppel said in a filing to SGX.

“Following the acquisition of a commercial property in Beijing’s Haidian District earlier this year, we are pleased to secure another prime commercial property in the same area,” Ben Lee, president of Keppel Land China, said in the statement. “Keppel Land China will continue our strategy to grow our commercial portfolio in China, with a focus on high-growth cities such as Beijing.”

Lee pointed to the low office vacancy rate of 1.5 percent in Zhongguancun at end-2018 and said it was likely to spur strong demand for the commercial project.

Shangdi Neo is located in the Shangdi Information Industry Park, in an area known as China’s Silicon Valley. The property is a five-storey development and after upgrading works are completed, it will be occupied by a sole tenant, co-working space operator Distrii, Keppel said.

The purchase price comprises 20.9 million to acquire Beijing Shunxiangren and 157.7 million yuan as a loan to the newly acquired company to repay its outstanding debts, Keppel said.

Keppel said the deal is expected to be completed by the fourth quarter of this year.

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