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SINGAPORE: Mapletree India China Fund, a US$1.16-billion private real estate fund under Mapletree Investments Pte Ltd, is acquiring Beijing Gateway Plaza at RMB2.9 billion.
In a statement on Feb 11, the fund said it has entered into a binding agreement with Hong Kong-listed REIT, RREEF China Commercial Trust (RREEF CCT) to acquire 100% of the special purpose vehicle holding legal and beneficial title to the property Beijing Gateway Plaza. The acquisition is subject to approval by unitholders of RREEF CCT.
Chief executive of Mapletree Investments Hiew Yoon Khong said Beijing Gateway Plaza is a premium Grade A office building located in Chaoyang District, within Beijing’s Lufthansa area, which is one of the four established business districts within Beijing.
“China is an important investment market for us and with Beijing being the capital city of China; we are confident that the demand for good quality office space will continue to grow. There is limited new supply of Class A office space over the next few years and we expect occupancy and rental rates to trend upwards,” he added.
Completed in August 2005, Beijing Gateway Plaza has a total above-ground gross floor area of approximately 102,735 sq m (1.1 million sq ft). It comprises two 25-storey office towers connected by a three-storey retail podium and 3 levels of car-park below ground. It features large floor plates ranging from about 1,500 sq. m to 2,300 sq. m, offering clients premium office spaces. It has a strong tenant base of multinational corporations and domestic enterprises.
This acquisition marks the fund’s fourth investment in China, and its second acquisition of a prime office building in Beijing. Together with this latest acquisition, the total combined value of MIC Fund’s portfolio is now about US$1 billion.
Its first acquisition was the former Motorola Tower (now renamed Mapletree Tower), also located in Chaoyang District, at the intersection of Jianguo Road and East Third Ring Road. Its other investments in China include a mixed-use retail and residential development in Xi’an called Future City and another mixed-use business and lifestyle development called Nanhai Business City in Foshan.
Beijing Gateway Plaza
