Ivanhoé Cambridge, APG buy stake in major Shanghai developer

Canadian real estate company Ivanhoé Cambridge and Dutch pension asset manager APG Asset Management have acquired a stake in Chongbang, a Shanghai-focused developer and operator of retail-anchored mixed-use projects, via a $920 mln (€820 mln) capital raising.

The capital raise is the second major institutional cash infusion for Chongbang, which already counts major institutions including Singapore’s sovereign wealth fund, GIC, among its shareholders.

Chongbang currently owns and operates 428,000 m2 of retail and commercial space in Shanghai with another 417,000 m2 under development.

The company was founded in 2003 by a group of Singaporean and Hong Kong investors, led by Henry Cheng and Stephen Wong. The company employs close to 400 people.

'Chongbang exemplifies Ivanhoé Cambridge’s growth strategy of building strategic alliances with prominent real estate companies that are proven industry leaders,' said Rita-Rose Gagné, executive vice-president of growth markets for Ivanhoé Cambridge.

She continued: 'This investment represents a milestone in the execution of our company’s strategy of significantly increasing our allocation in key growth markets, where Shanghai is an important pillar. We look forward to working with Chongbang with a view to increasing our investments in select, large-scale real estate projects in the Shanghai region.'

Sachin Doshi, managing director and head of private real estate investments, Asia-Pacific at APG added: 'This investment demonstrates our deep commitment to China and the Asia-Pacific region and follows the $650 mln commitment we made to Shanghai-based logistics developer e-Shang in 2014.'

Chongbang said it has identified 'several development opportunities in core retail precincts in Shanghai as use of proceeds from this capital raising'.