CapitaLand Investment has bought a business park in Shanghai from Tishman Speyer for RMB7.6bn (€1.04bn) for its CapitaLand China Business Park Core RMB Fund II (CBPCF II).
CBPCF II was launched in November last year and includes Dajia Insurance as an anchor investor.
The business park, which comprises 10 office buildings, is part of a development known as The Springs and the first phase of Tishman Speyer’s sprawling project in Shanghai.
Tishman Speyer announced the sale through Chinese social media platform WeChat and said it was one of the largest real estate transactions in China in 2022.
“We set out here more than a decade ago to create a vibrant, mixed-use community designed to bring together world-class technology companies,” said Rob Speyer, CEO of Tishman Speyer. “CapitaLand’s investment is a testament to the tremendous success of our vision.”
He added: “We are delighted to have completed this transaction with them. Tishman Speyer is fully committed to entering the final stages of the development.”
Tishman Speyer is currently constructing the landmark “twin towers” of the project, with sky terraces and roof gardens. One of the towers is scheduled for completion this year and the second is expected to be completed in 2025.
The Springs, which is being developed in three stages, is Tishman Speyer’s largest project in China. The US firm initiated it in 2011 on a total site area of 900,230sqm. The complex includes grade-A office buildings, residences, hotels and a range of retail and entertainment facilities.
The Springs business park is the second major transaction in the large development project over the past 18 months. In June 2021, Tishman Speyer sold four office buildings under construction to a technology, media and telecom company for its new regional headquarters.
CapitaLand established its latest China fund, CBPCF II, with Yuanjian Gongchuang Capital Management, an insurance private equity fund management platform under Dajia Investment Holdings. The latter is an affiliate of Dajia Insurance, an anchor investor in the fund.
CapitaLand launched CBPCF I and II last November, raising around RMB4bn for the two funds. It raised RMB3.6bn for CBPCF II from six Chinese investors. CapitaLand launched the predecessor to the two funds, CapitaLand China Special Situation RMB Fund (CSSRF), I last year.
Puah Tze Shyang, CEO of CapitaLand Investments China, said: “The successful establishment of three RMB funds within half a year proves that CapitaLand’s nearly 30 years of local experience in China, and its asset and fund management capabilities, have been fully recognised by the market.”
He said a number of “high-quality” domestic investors had invested in the funds.
“China is one of the most important core markets for CapitaLand. The development of RMB fund business will allow us to better serve the local market,” he said.
“We leverage our fund-management capabilities to provide domestic capital with high-quality asset-management capabilities to enhance asset value.”