The remaining 15% interest will be retained by the seller, D&J China. Allianz will have 62% share in the joint venture and is also one of the investors in the fund. The sale and purchase agreement as well as the joint venture agreement have been executed, with the transaction expected to close in Q4 2019. The asset will be jointly managed by Allianz Real Estate, Alpha Investment Partners and D&J China.
Completed in March 2018, the Ronsin Technology Center comprises six office towers and two retail podiums and has a total leasable area of approximately 131,000 sqm. The asset, located above the Laiguangying subway station in Beijing’s Wangjing sub-district which is home to many domestic unicorn and technology companies, is in the stabilization phase with an occupancy rate of 70%.
“This is a continuation of Allianz’s investment strategy to allocate 50-60% of its Asia Pacific real estate exposure to fast-growing markets such as China and India. Beijing is demonstrating strong resilience to current volatility in the global markets while Wangjing is a well-established sub-market for technology & innovation firms, which is experiencing persistent demand with tight supply,” said Rushabh Desai, Asia-Pacific CEO of Allianz Real Estate. “After Duo Tower in Singapore, this is the second investment where Allianz Real Estate is the joint asset manager. Over the last year, we have expanded our team through the hire of several China experts, enabling us to manage our growing book of China assets directly.”
“D&J China is very pleased to enter into this strategic partnership with Allianz and Alpha Investment Partners. We are very proud of Ronsin Technology Center, which has become one of the landmark assets in the Wangjing sub-market. This partnership is a remarkable endorsement to the quality and value of our property assets, our proven business model and our strong asset management capabilities,” said Mr Sun Dong Ping, Chief Executive Officer of D&J China. “We look forward to a successful partnership in the years to come, and continuing to build D&J China into a best-in-class integrated properties and services provider in China.”
This will be the second direct office acquisition by Allianz in Beijing. In 2018, Allianz acquired a 98% interest in ZLink, a grade A office asset located in Zhongguancun.