CapitaLand acquires huge chunk of Lujiazui office building

CapitaLand announced today that it has acquired 70 percent of an office building in Lujiazui for 2.75 billion yuan (US$401 million), in partnership with an unrelated third party.

CapitaLand, one of Asia's largest real estate developers, announced today that it has acquired 70 percent of an operational office building in Lujiazui for 2.75 billion yuan (US$401 million), in partnership with an unrelated third party.

A 50-50 joint venture has been formed to facilitate the purchase of Pufa Tower, the second major acquisition made by CapitaLand in Shanghai in less than two months. After the transaction, CapitaLand and its partner will own levels 8 to 19 and levels 21 to 32, with a total gross floor area of 41,773 square meters, as well as 61 car parking spaces, according to a statement posted on the developer's official website.

"We are pleased to enter the core Lujiazui CBD soon after securing our third Raffles City development in Shanghai, the top investment destination in China," said Lucas Loh of CapitaLand Group. "The acquisition of Pufa Tower will immediately contribute to the group's recurring income and strategically diversify CapitaLand's commercial portfolio into a key CBD, capturing new growth while entrenching the group's leadership as the foreign developer with the largest portfolio under management in Shanghai."

Including this latest acquisition, CapitaLand now owns or manages 21 commercial properties in Shanghai with close to 1.9 million square meters in total gross floor area.

In mid November 2018, the developer, in conjunction with Singapore's sovereign wealth fund GIC, acquired Shanghai's tallest twin towers for 12.8 billion yuan.

En-bloc real estate investment deals exceeded 105 billion yuan in Shanghai last year, staying above the 100-billion-yuan threshold for the third consecutive year, according to a recent report released by global property services provider Cushman & Wakefield.

"Notably, foreign investors played a very active role in the city's real estate investment market last year as they accounted for 61 percent of the total transaction value, compared to a 24 percent stake in 2017," said Eric Lu, executive director of capital markets at Cushman & Wakefield. "We expect the property buying momentum to remain strong in 2019 with foreign investors continuing to be vibrant players in the market."

Special Reports
Top