LaSalle Acquires Shanghai International Plaza
SHANGHAI (April 05, 2018) — LaSalle Investment Management (“LaSalle”) is pleased to announce the acquisition of Shanghai International Plaza (“SIP”) from Alpha Asia Macro Trends Fund II (“Alpha”). The property was acquired on behalf of LaSalle Asia Opportunity V (“LAO V”), the fifth in LaSalle’s series of closed-end, pan-Asia opportunistic funds.
Mark Gabbay, Chief Executive Officer and Chief Investment Officer – Asia Pacific, LaSalle, said: “I am delighted with LaSalle’s acquisition of SIP. This landmark asset is an excellent addition to LAO V and our experienced team are well-placed to implement our opportunistic strategy and reposition the building in this prime location. As China’s largest financial centre with a thriving economy, we are optimistic on the growth of the Shanghai’s office sector.”
SIP is a mixed-use office and retail building located in the vibrant Sichuan North Road precinct with a view of the Shanghai Bund. The property has a total gross floor area of approximately 56,000 m² spread across 24 storeys of office as well as a six-storey retail podium. In line with LAO V’s investment strategy, LaSalle plans to further augment the building’s existing refurbishments, refreshing interior spaces for greater tenant appeal and satisfaction.
The property offers immediate access to Metro Line 10, and is within walking distance to Metro Lines 3, 4 and 12.
Sichuan North Road precinct is a mature business area in HongKou district. The overall office occupancy rate stands above 90% and is currently supported by logistics, shipping, and domestic financial firms. The submarket is one of Shanghai’s key historical precincts and is currently being revitalised into a new central business area. Recent significant infrastructure improvements will further enhance its status as a prime business address.
Claire Tang, Head of Acquisitions for China, commented: “Shanghai's rapid urbanisation and economic growth leads to increasing demand for well-located, high-quality office space outside of the traditional business areas. Benefiting from its excellent location and connectivity, we anticipate strong growth in future demand as the HongKou submarket continues to emerge as a new CBD area in Shanghai. We see significant opportunity to improve the asset’s income profile via repositioning. Our asset enhancement plan includes refurbishing the retail podium as well as upgrading the lobby and common areas.”
About LaSalle Investment Management
LaSalle Investment Management is one of the world's leading real estate investment managers. On a global basis, LaSalle manages approximately $64 billion of assets in private and public real estate property and debt investments as of Q4 2018. LaSalle's diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. For more information please visit http://www.lasalle.com, and LinkedIn.
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