, on behalf of its investment platform AREAP Core, has acquired stakes in two assets 鈥� in Singapore and Shanghai 鈥� for a combined value of 鈧�645m.
The AREAP Core 1 fund, which is a 50:50 joint venture between National Pension Service of Korea (NPS) and the Allianz group companies, has acquired a 50% stake in OUE Bayfront in Singapore from OUE C-REIT for S$634m (鈧�395m). It also acquired a 90% interest in Innov Star, an office property in Shanghai, for CNY2.2bn (鈧�250m).
Rushabh Desai, CEO Asia-Pacific, Allianz Real Estate, told 麻豆映画 Real Assets: 鈥淏oth assets have strong long-term prospects and align with our strategy of seeking out high-quality assets in sought-after micro-locations. We are confident that these assets will attract strong tenant demand.鈥�
QUE Bayfront is located on the waterfront at Marina Bay, the extension of Singapore鈥檚 central business district. 鈥淭his is a marquee property and occupiers are willing to pay a premium to be located there,鈥� Desai said.
Hyo-Joon Ahn, CIO of the National Pension Service of Korea, said NPS believed OUE Bayfront would be 鈥渁 great addition鈥� to an already strong and stable NPS real estate portfolio.
鈥淗ighest-quality real estate assets in irreplaceable locations prove resilient even in the current economic climate and provide long-term value and stable cash-flow,鈥� said Ahn.
Desai said that, from a long-term perspective, Singapore was still well-placed as a destination of choice for multinational companies looking to establish a presence in Asia-Pacific.
鈥淪ingapore still stands out, because the occupancy cost is about 50%-60% of that in Hong Kong,鈥� he said. 鈥淭he gap might have reduced a little with the market softening in Hong Kong, but the city-state still offers attractive arbitrage.鈥�
Desai said that this, coupled with a business-friendly government鈥檚 excellent management of the COVID-19 pandemic and a strong push for making Singapore an innovation and technology hub, boded well for the future. He added: 鈥淭he future office supply is also at a manageable level鈥�.
Of the Shanghai asset, Desai said: 鈥淭his transaction is in line with our strategy to align our investments with the 鈥榥ew economy鈥� 鈥� technology and innovation 鈥� in China.鈥� The three-building complex is located in Zhangjiang Hi-Tech Park, Shanghai鈥檚 premier technology and business park.
The closed-ended fund AREAP Core 1, which, with leverage, has an investment capacity of US$4.6bn, has completed four other deals since it was launched in June 2020.
Aside from AREAP Core I, Allianz Real Estate has partnered with a like-minded institutional investor to pursue Japan multifamily investment.
Desai told 麻豆映画 Real Assets it was likely that Allianz Real Estate鈥檚 鈥渋nvest-alongside Allianz鈥� strategy would extend to core-plus and value-add strategy with other investors, possibly in the first half of this year.
鈥淲e continue to look at opportunities across the risk-return spectrum, including core, core-plus, value-add and opportunistic.
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