CapitaLand buys Shanghai office tower for $402m

CapitaLand has formed a 50-50 joint venture to acquire 70 percent of the Pufa Tower in Shanghai’s Lujiazui financial district for RMB 2.75 billion ($402 million).

“We are pleased to enter Shanghai’s core Lujiazui CBD soon after securing our third Raffles City development in the city,” said Lucas Loh, president (China & Investment Management), CapitaLand Group. “Shanghai is the top investment destination in China, with strong end-user demand for commercial properties. The acquisition of Pufa Tower, an operational asset, will immediately contribute to the Group’s recurring income. It will also strategically diversify CapitaLand’s commercial portfolio into a key CBD to capture new growth, while entrenching the Group’s leadership as the foreign developer with the largest portfolio under management in Shanghai.”

Mingtiandi reported the partner to be U.S. real estate private equity firm AEW and the seller was a vehicle controlled by HNA Group, citing u