Allianz has partnered with a real estate fund managed by Keppel Capital to buy a 13-storey office property in Shanghai’s Bay Valley Business Park.

The German insurer’s €60bn real estate investment business has joined Alpha Asia Macro Trends Fund III (AAMTF III) and a co-investor to invest $48m (€41m) in Bay Valley C6. The gross asset value is around $90m.

AAMTF III is managed by Keppel’s subsidiary Alpha Investment Partners.

Allianz Real Estate, which made the deal on behalf of several Allianz companies, will own 41.5% of the equity. The remaining 58.5% stake will be held by AAMTF III and one of its co-investors. Allianz is also an investor in AAMTF III.

Rushabh Desai, CEO Asia-Pacific at Allianz Real Estate, said: “This transaction is aligned with our approach of investing in China’s new economy, which has successfully transformed from a manufacturing-driven economy to a more balanced service-based economy.

“We are also excited about the long-term prospects of Shanghai as a 24x7 gateway city. This is our second investment with AAMTF III in China. Our partnership with Keppel is growing from strength to strength.”

Eric Goh, CEO (China), Keppel Capital, said: “Our experienced team is well-positioned to create value and drive returns for the asset through innovative asset management and proactive leasing strategies.

“The partnership with existing investors of AAMTF III such as Allianz is also testament to the confidence that they have in Keppel Capital in delivering good returns.”

 An earlier version of this story misstated the amount being invested by the partnership.