CapitaLand Ltd. formed a 50/50 joint venture with an unnamed partner to acquire roughly 70% of the Pufa Tower office asset in Shanghai for 2.75 billion yuan.
The 34-story tower is located at 588 South Pudong Rd. in the city's Lujiazui central business district. CapitaLand and its partner will jointly own floors 8 to 19 and 21 to 32, spanning a total gross floor area of 41,773 square meters, along with 61 car park slots.
Shanghai Pudong Development Bank will own the remainder of the building, with the property's ground-floor lobby and refuge floor on the 20th story to be co-owned by the bank and the joint venture.
The property stake will serve as the seed asset for a new value-add fund that Singapore-based CapitaLand is setting up to invest in commercial real estate in key gateway Asian cities.
CapitaLand China chief investment officer Puah Tze Shyang said in a release that the company intends to carry out an asset enhancement initiative at the property.
CapitaLand now owns and manages 21 commercial properties in Shanghai, including the latest acquisition.
As of Jan. 4, US$1 was equivalent to 6.87 yuan.