Allianz Real Estate will acquire an 85% interest in Ronsin Technology Center, an international Grade A office complex worth €1 billlion in Beijing.
Allianz Real Estate has formed a joint venture with Alpha Asia Macro Trends Fund III, a fund managed by Alpha Investment Partners, the private fund management arm of Keppel Capital for the acquisition.
The remaining 15% interest will be retained by the seller, D&J China. Allianz will have 62% share in the joint venture and is also one of the investors in the fund. The asset will be jointly managed by Allianz Real Estate, Alpha Investment Partners and D&J China.
The transaction is expected to close in Q4 2019.
“After Duo Tower in Singapore, this is the second investment where Allianz Real Estate is the joint asset manager. Over the last year, we have expanded our team through the hire of several China experts, enabling us to manage our growing book of China assets directly,” said Rushabh Desai, Asia-Pacific CEO of Allianz Real Estate.
The Beijing grade A office complex was completed in March 2018 and comprises six office towers and two retail podiums.
Ronsin Technology Center has a total leasable area of approximately 131,000 sqm. The asset, located above the Laiguangying subway station in Beijing’s Wangjing sub-district which is home to many domestic unicorn and technology companies, is in the stabilization phase with an occupancy rate of 70%.
This will be the second direct office acquisition by Allianz in Beijing. In 2018, Allianz acquired a 98% interest in ZLink, a grade A office asset located in Zhongguancun.