CapitaLand Ltd. will transfer the Innov Center office building in the Yangpu district of Shanghai to its CapitaLand Asia Partners I fund for a roughly 3.10 billion yuan consideration.

The transaction that will involve the sale to the fund of its interest in the companies that own the property is expected to be completed in the third quarter of 2019. It is part of the Singapore-listed property group's capital management strategy for China, according to a news release.

CapitaLand Asia Partners I, which intends to invest in value-add and transitional office buildings in Singapore, China and Japan, is CapitaLand's maiden discretionary real estate equity fund. It collected US$391.3 million during its first closing from investors including pension funds, insurance companies and financial institutions from Asia and Europe.

Aside from the Innov Center, the fund will also gain ownership of the Pufa Tower office development in the Lujiazui central business district of the Chinese city, CapitaLand added.

Elsewhere in Shanghai, CapitaLand also unveiled plans for the Raffles City The Bund integrated development. The project will feature the tallest twin towers in the city and will have a total gross floor area of 312,717 square meters, excluding its carpark. It will comprise two 50-story office buildings that are connected by a seven-story shopping mall, according to the developer.

As of May 23, US$1 was equivalent to 6.91 yuan.