Allianz, Alpha Investment Partners JV to acquire stake in Beijing office complex

By Timothy Tay

/ EdgeProp Singapore |

October 16, 2019 3:20 PM SGT

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Allianz Real Estate has formed a joint venture (JV) with Alpha Asia Macro Trends Fund III (AAMTF3) to acquire an 85% stake in Ronsin Technology Centre, a Grade-A office building in Beijing. Allianz is acting on behalf of several Allianz companies, while AAMTF3 is a fund managed by Alpha Investment Partners, the private fund management arm of Keppel Capital.

Allianz will have a 62% share in the JV, with AAMTF3 holding 38%. Ronsin Technology Centre has a valuation of about EUR1 billion ($1.51 billion). The remaining 15% stake in the building will be retained by the seller, D&J China. The sale and purchase agreement, as well as the JV agreement, have been executed, and the transaction is expected to close by year-end. The building will be jointly managed by Alliaz Real Estate, Alpha Investment Partners, and D&J China.

Ronsin Technology Centre is a Grade-A office building in Beijing (Picture: Allianz Real Estate)

Completed in March 2018, the property is located above the Laiguangying subway station in the Wangjing sub-district. It comprises six office towers and two retail podiums, and has a total leasable area of about 1.41 million sq ft. The entire development is about 70% occupied.

Rushabh Desai, Asia-Pacific CEO of Allianz Real Estate, says: “This is a continuation of Allianz’s investment strategy to allocate 50-60% of its Asia-Pacific real estate exposure to fast-growing markets such as China and India. Beijing is demonstrating strong resilience to current volatility in the global markets, while Wangjing is a well-established sub-market for technology and innovation firms, which is experiencing persistent demand with tight supply.”

This is the second direct office acquisition by Allianz in Beijing after it acquired a 98% stake in ZLink, another Grade-A office asset in Zhongguancun last year. Allianz Real Estate is also the joint asset manager of the office and retail components in Duo Tower in Singapore, which was sold for $1.58 billion in July this year.

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