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Alpha Asia Macro Trends Fund II (AAMTF II), which is managed by Keppel Capital’s private fund manager, has sold its 100 percent stake in Shanghai International Plaza, an office and retail mixed-use development, to LaSalle Investment Management.
Previously acquired for about US$133 million (S$175 million) in 2014, Shanghai International Plaza was repositioned by AAMTF II to attract more diversified tenants through active value-adding and enhancement works.
The property, which features office space spread across 24 storeys and a six-storey retail podium, has a gross floor area of around 56,000 sq m and is located at the junction of two major thoroughfares – Sichuan North Road and Wujin Road in Shanghai’s Hongkou District.
“In the AAMTF series, we seek to create value and drive returns through innovative asset management and proactive leasing strategies,” said Alpha CEO Alvin Mah.
“For Shanghai International Plaza, our rigorous value creation initiatives have allowed us to realise an internal rate of return of close to 20 percent on the sale of the investment. This follows Alpha’s successful sale of another mixed-use property, Life Hub @ Jinqiao, in 2016, which generated an internal rate of return of over 20 percent.”
He noted that the successful completion of the two transactions “exemplifies Alpha’s approach to investing for our value-add funds and underscores our strong track record in the Shanghai market”.
The third value-add Pan-Asian fund in Alpha’s flagship series, AAMTF III was launched in 2016 with a target size of US$1.0 billion (S$1.3 billion).
Alpha has raised more than US$560 million (S$737 million) as at end-2017.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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