TSMP Acts for Allianz Real Estate in Beijing Property Deal

August, 2018 - Singapore

TSMP advised Allianz Real Estate in its approx. US$190 million all-cash purchase of 98 per cent of the ZLink office tower in Beijing.

The property investment arm of Germany's Allianz SE expects China to account for up to half of its Asia-Pacific fund allocation going forward from 40 per cent now, with focus on the new economy and logistics sectors.

Allianz Real Estate is just one of many foreign investment firms betting on growth in the commercial property markets of China's top-tier cities, driven by high demand from small start-ups to large corporates. The firm bought 98 per cent of the Beijing office tower - dubbed ZLink and valued at US$185 million to US$195 million (S$250 million to S$264 million) - in an all-cash deal from private equity firm KaiLong Group and Goldman Sachs Group.

Allianz Real Estate is on track to meet its China portfolio growth target of over €1 billion (S$1.6 billion) at the end of this year, from around €800 million to €900 million at present. TSMP worked with DLA Piper Hong Kong.