CapitaLand Investment (CLI) has divested a 95% stake in the Capital Square Beijing office tower in Beijing to AIA Life Insurance for RMB2.4bn (€311m).

This is the insurer’s second investment with CLI. AIA invested in one of the CLI’s RMB funds in 2022.

CLI holds the remaining 5% interest in the building in the Chinese capital.

CLI China acquired the building, located in the central business district in Chaoyang District, in October 2022 through a court auction for RMB2bn, reportedly at a 30% discount. 

Then known as Borui Plaza, it was sold by a Chinese bank that funded the Dalian-based Yongjia Group after the borrower defaulted on its loan. CLI has since upgraded and revitalised the tenant mix in the building.

Puah Tze Shyang, CEO of CLI  in China, said: “Despite a challenging fundraising and operating environment, we have successfully brought in AIA as a joint venture partner in Capital Square Beijing.

“CLI’s joint venture with AIA demonstrates the trust that capital partners have in our on-the-ground expertise to unlock value from our assets and deliver strong returns.”

Over the past year, CLI has recycled more than RMB3bn in capital in China. Its divestment included a partial stake in a logistics development in Foshan, Guangdong to the CapitaLand China Opportunistic Partners Programme.

To read the latest IPE Real Assets magazine click here.