Allianz has partnered with a real estate fund managed by Keppel Capital to buy a 13-storey office property in Shanghai鈥檚 Bay Valley Business Park.
The German insurer鈥檚 鈧�60bn real estate investment business has joined Alpha Asia Macro Trends Fund III (AAMTF III) and a co-investor to invest $48m (鈧�41m) in Bay Valley C6. The gross asset value is around $90m.
AAMTF III is managed by Keppel鈥檚 subsidiary Alpha Investment Partners.
Allianz Real Estate, which made the deal on behalf of several Allianz companies, will own 41.5% of the equity. The remaining 58.5% stake will be held by AAMTF III and one of its co-investors. Allianz is also an investor in AAMTF III.
Rushabh Desai, CEO Asia-Pacific at Allianz Real Estate, said: 鈥淭his transaction is aligned with our approach of investing in China鈥檚 new economy, which has successfully transformed from a manufacturing-driven economy to a more balanced service-based economy.
鈥淲e are also excited about the long-term prospects of Shanghai as a 24x7 gateway city. This is our second investment with AAMTF III in China. Our partnership with Keppel is growing from strength to strength.鈥�
Eric Goh, CEO (China), Keppel Capital, said: 鈥淥ur experienced team is well-positioned to create value and drive returns for the asset through innovative asset management and proactive leasing strategies.
鈥淭he partnership with existing investors of AAMTF III such as Allianz is also testament to the confidence that they have in Keppel Capital in delivering good returns.鈥�
An earlier version of this story misstated the amount being invested by the partnership.
