View of Lifehub@Daning from Gonghexin Road
Fifth Acquisition in Asia
Chelsfield Asia announced today that it has made its fifth investment from its Asian value-add fund to acquire a fifty percent stake in four office buildings (“the Project”) located in Lifehub@Daning, which is a large-scale, retail-anchored mixed-use project in the Daning neighbourhood of Jing’an District, Shanghai, China through a 50/50 Joint Venture with Hong Kong based investment management firm Pamfleet.
Completed in 2006, the four office buildings comprise 37,546 square metres of office space. The project is situated at the junction of Daning Road and Gonghexing Road, conveniently accessible by Metro Line 1 Yanchang and with excellent connectivity to the elevated highway. The Project is about five kilometres north from Nanjing West Road and four metro stations away from the People’s Square station, both of which are considered to be the most important business districts in Shanghai.
Chelsfield and Pamfleet’s strategy will focus on refurbishing the offices and optimising the tenancy mix and structure to achieve a better overall rental performance. The Joint Venture will also explore working with an established co-working space operator to take up some space in one of the buildings to create synergy and give flexibility to the tenants of the other buildings.
Nick Loup, Chief Executive Officer of Chelsfield Asia, says, “We are delighted to partner again with Pamfleet on this opportunity to acquire our second office investment in Shanghai which presents an excellent opportunity to capture the growth opportunities arising from the development of the Daning submarket. With tenants looking to move away from central areas in recent years, and thanks to its great accessibility and proximity to Nanjing Road West CBD, we are confident that the office buildings will be attractive for tenants that would like an alternative to the high rents in Shanghai’s CBD area.”