Alpha Asia Macro Trends Fund III (AAMTF III), Keppel Land China and co-investors have acquired the Yi Fang Tower mixed-use complex in Shanghai for RMB4.6bn (€606m).

The vendor of the recently-completed tower is North Bund Keppel, a subsidiary of AAMTF III, Alpha Investment Partners’ third Asia value-add fund.

Under the agreement, AAMTF III and Keppel Land China will subscribe for 42.1% and 29.8% stakes in North Bund Keppel respectively. The other co-investors will hold the remaining stake in North Bund Keppel.

Yi Fang Tower, located in the historic Bund area, is made up of two 18-storey office towers and a retail podium. It has a total gross leasable area of about 74,400sqm, comprising about 47,500sqm of office space and about 26,900sqm of retail space.

Eric Goh, CEO (China) of Keppel Capital, said, “We have closed deals in Shanghai amounting to more than RMB14.5bn to-date for our AAMTF series as well as for co-investors.”

“The proposed acquisition is in line with Keppel Capital’s investment strategy of creating value and driving returns for our investors,” said Goh.

Ben Lee, president of Keppel Land China, said this transaction is the third time that Keppel Land is collaborating with Keppel Capital to invest in prime properties in Shanghai.

“It is in line with our strategy to grow our commercial portfolio in China, with a focus on first-tier cities such as Shanghai.“