Alpha, Keppel Land partner for $525m Shanghai buy

The two subsidiaries of Singaporean conglomerate Keppel Group have partnered for the second time, this time to acquire a Shanghai office and mixed-use asset.

Alpha Investment Partners (Alpha) and Keppel Land China, subsidiaries of the Singapore conglomerate Keppel Group, have jointly acquired SOHO Hangkou in Shanghai for approximately $525 million.

SOHO is an office and mixed-use development asset. The two firms have acquired it through purchasing a 30 percent stake in Vision (III), an entity that fully owns the asset. Additionally, a 30 percent stake in the asset is also held by an undisclosed investor.

Alpha, the real estate funds management platform under Keppel Capital Holdings, has deployed part of its capital via the Alpha Asia Macro Trends Fund (AAMTF) III.

The fund is the third in the series of closed-ended, value-added vehicles that Alpha has launched to invest in sectors that can tap macroeconomic and social trends. The firm set a $1 billion target for the fund early last year.

“This is the second time that Keppel Land China and Alpha are harnessing strengths across the Keppel Group and collaborating to acquire a premium property in a strategic location in Shanghai, after Life Hub @Jinqiao,” commented Ang Wee Gee, chief executive of Keppel Land and chairman of Keppel Group. “This acquisition is also in line with our strategy to scale up in high-growth cities, such as Shanghai, where Keppel Land China has established a firm foothold.”

In September, 2016, the two firms divested their 80 percent stake in the Shanghai commercial complex, Life Hub, to the Chongbang Group for $516.9 million.

According to an official statement, the exit generated an internal rate of return of more than 20 percent.