Keppel unit to buy Shanghai office for $65.8m

It is a 13-storey Grade A building with a gross floor area of 19,758 sq m.

Keppel unit Alpha Investment Partners (Alpha) is set to acquire Bay Valley C6 which is a prime office building in Shanghai for $65.8m (US$48m) through a joint venture (JV) with Allianz Real Estate, an announcement revealed.

Through the JV, Alpha subsidiary subscribed to a 48% stake in Jiangwan Valley which holds an indirect 100% stake in Bay Valley C6. Allianz will hold a 41.5% stake and the remaining 10.5% stake will be held by another investor.

Located in the Bay Valley Business Park in Yangpu District, the property is a 13-storey Grade A office building. It offers a total aboveground gross floor area (GFA) of 19,768 sq m and has seen positive leasing demand especially from the TMT and pharmaceutical sectors.

“The acquisition of the strategically located Bay Valley C6, which is seeing growing demand from companies in the biomedical and technology, media and telecommunications (TMT) sectors, is an excellent addition to Alpha Asia Macro Trends Fund III (AAMTF III), given the positive outlook of Shanghai’s technology industry,” Keppel capital Eric Goh said.