Keppel Capital and its co-investors have entered into a shareholders' agreement on March 25 to acquire Yi Fang Tower for RMB 4.6 billion ($925 million). This was done through the joint venture company North Bund Keppel. The acquisition is expected to be completed in the second quarter of 2019.

Last September, North Bund Keppel entered into a framework agreement with Yi Fang Jing Yi Enterprise Management to acquire Yi Fang Tower. North Bund Keppel is a wholly-owned subsidiary of Alpha Asia Macro Trends Fund III (AAMTF III), the private fund management arm of Keppel Capital, managed by Alpha Investment Partners Limited (Alpha).

Under the agreement, AAMTF III and Keppel Land China will have 42.1% and 29.8% stakes in North Bund Keppel respectively, and the remaining stake in North Bund Keppel will be held by the other co-investors.

Located in the Hongkou District, Yi Fang Tower is well-connected to the Shanghai Metro, with direct access to the International Cruise Station on Metro Line 12. The completion of Beiheng Tunnel in 2020, a five-minute drive to the property, will enhance the property's overall connectivity to other parts of Shanghai.

Situated in the centre of the North Bund area and in close proximity to the Lujiazui Financial Centre and the Bund, Yi Fang Tower has two 18-storey office towers and a retail podium. It has a total gross leasable area of about 800,835 sq ft, comprising about 511,286 sq ft of office space and about 289,549 sq ft of retail space.

This acquisition is “in line with our strategy to grow our commercial portfolio in China, with a focus on first-tier cities such as Shanghai”, says Ben Lee, president of Keppel Land China.