A co-investment between Allianz Real Estate and the Keppel Group will acquire Hongkou SOHO, a 754,000-square-foot office property located in Shanghai’s Hongkou District, for $525 million.
Keppel’s Alpha Asia Macro Trends Fund III will own a 40 percent stake in the property, while Allianz and Keppel Land China will each hold a 30 percent interest in the asset. Allianz’s 30 percent stake in the property brings its initial commitment to the co-investment group, Vision III, from $150 million to $200 million.
Keppel Land China and Allianz are both investors in AAMTF III, which is managed by Alpha Investment Partners, a wholly owned subsidiary of Keppel Capital.
According to Allianz, the transaction is part of its strategy to allocate approximately 5 percent of its real estate portfolio to the Asia Pacific region.
Located in the central business district of Shanghai, the building is well connected by metro to the city, and by roads and tunnels to surrounding districts.
Completed in 2015, Hongkou Soho also includes of 51,000 square feet of retail space and holds a gold certificate under the Leadership in Energy and Design.
