Ascendas-Singbridge Group has strengthened its relationship with Mitsui & Co by forming a new partnership to own and manage two office buildings in Shanghai’s central business district.

Ascendas-Singbridge has formed the 55-45 partnership to own the Ascendas Innovation Place and Ascendas Plaza assets, in Hangpu and Xujiahi districts of Shanghai respectively.

The value of the transaction was not disclosed.

Ascendas-Singbridge purchased Ascendas Innovation Place in 2017 from the US fund manager AEW reportedly for CNY1.35bn (€177m) and proceeded to upgrade the asset. Ascendas Plaza has been held as part of the group’s China portfolio for some years.

He Jihong, Ascendas-Singbridge Group’s chief investment officer, said: “Ascendas-Singbridge and Mitsui share many similarities in our investment and operational philosophy in the real estate sector.”

She said the new partnership with Mitsui would position the two parties well to capture growing demand for modern, quality workspaces in China.

Kain Matsumoto, general manager of Mitsui’s real estate division, said the new venture would add “significant value” to the assets.

Matsumoto spoke of “our complementary strengths, extensive regional knowledge and combined expertise” and said that, together, the partners would build on their successful track record in the Asian market.

The Shanghai venture is the fourth partnership so far established between Ascendas-Singbridge and Mitsui. The others are in Singapore and Malaysia. 

Mitsui first partnered Ascendas-Singbridge in 2012 in the development of the sprawling Galaxie-in-Fusion business park in suburban Singapore.