German insurance giant Allianz said it has entered into a co-investment agreement with Singapore's Keppel Group to buy Hongkou SOHO, an office and retail building in Shanghai's Hongkou District, for US$525 million.
Keppel Group's AAMTF III will hold a 40 percent stake and the remaining 60 percent will be equally split between Allianz and Keppel Land China, Allianz said in a statement on Wednesday.
Both Allianz and Keppel Land are investors in AAMTF III, which is managed by Alpha Investment Partners (Alpha), a unit of Keppel Capital.
Allianz Real Estate, the $53 billion real estate investment and asset manager within the Allianz Group, implemented the transaction as part of its strategy to allocate around 5 percent of its global real estate portfolio to the Asia Pacific region.
Designed by leading architect Kengo Kuma, Hongkou SOHO boasts an eye-catching structure and facade.
The architecture consists of pleats, which change their expressions gradually according to the angle, strength, and tone of sunshine.
"We are attracted to Shanghai as a leading global 24/7 city...," said Rushabh Desai, head of Allianz Real Estate Asia-Pacific.
"Co-investing with local experts is an approach our investors favour for the region and we look forward to broadening our activity in this area."
