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The month before, CapitaLand Investment (CLI) announced the acquisition of two assets located in China by way of the CapitaLand China Opportunistic Partners Programme (CCOP Program). The fund has acquired $1.1 billion in equity pledged to invest in special possibilities in China.
One of the assets purchased was Suning Life Plaza, an integrated development located in Beijing which was acquired by a single asset fund in the CCOP Programme for $553 million. The deal was mediated through Cushman & Wakefield, who declares it to be one of the very first CBD commercial real estate deal that has been completed in China during the current year. “The deal is among the first for foreign investors since the Chinese government began relaxing its anti-Covid-19 laws in December” according to the firm in a press announcement.
Suning Life Plaza is a 19-storey building that covers 566,182 square feet of retail and office net lettable space. “Following the purchase the fund will be renovating an area of the commercial zone to accommodate office space. While investment-grade properties in Beijing have been scarce in the past, Suning Life Plaza has been identified as a potential opportunity for upgrading and improvement,” claims Charli Chan. Chan is the Cushman and Wakefield’s executive director for Capital Markets in China.
Gordon Marsden, head of capital markets Asia Pacific at Cushman & Wakefield Gordon Marsden, head of capital markets Asia Pacific at Cushman & Wakefield, deal is a reflection of the continuing interest of investors in this Mainland China market. This coincides with findings from a recent study carried out by the consultancy which showed that investors’ interests remain focussed on the Tier 1 cities within Mainland China.
“While certain foreign capital is cautious with regards to China investments There are a number of long-term, experienced investors who view the current economic situation as an possibility to make investments in China as they are not facing competition from their peers,” adds Catherine Chen Cushman and Wakefield’s head of research on capital markets, Greater China.