Large-scale office property transactions in Beijing have become active.

On October 16, Allianz Joint Venture acquired a 1 billion euro office building project to expand its real estate business in Beijing.

At present, the relevant sales and purchase agreement and joint venture agreement have been signed, and the transaction is expected to be completed in the fourth quarter of 2019.

The above assets will be jointly managed by Allianz Real Estate, Alpha Capital Management Co., Ltd. and Dongjiu China ***. It is reported that Allianz Real Estate represents a number of Allianz Group companies, and Alpha Asia Macro Trends Fund III (Alpha Asia Macro Trends Fund III)

) established a joint venture to acquire 85% of the equity in Beijing Rongxin Technology Center, while the remaining 15% of the equity will continue to be held by the seller, Dongjiu China.

The property in question is an international Grade A office building located in Wangjing District, Beijing, with a valuation of approximately 1 billion euros.

It is understood that Beijing Rongxin Technology Center was completed in March 2018. It consists of six office buildings and two shopping mall podiums, with a total leasing area of ??approximately 131,000 square meters.

The property is located above Laiguangying Subway Station in Wangjing District, Beijing, where many local unicorns and technology companies gather.

At present, the asset has entered a stable operation period, with an occupancy rate of 70%.

It is worth mentioning that this transaction is the second office building acquisition project directly carried out by Allianz in Beijing.

Previously, Allianz acquired 98% of the equity in Gaokeling, a Grade A office building in Zhongguancun, in 2018.

Rushabh Desai, CEO of Allianz Real Estate Asia Pacific, said: "This transaction is in line with Allianz's investment strategy. In the Asia Pacific region, we intend to invest 50% to 60% of our portfolio in fast-growing markets such as China and India. Beijing

The ability to effectively withstand fluctuations in global market conditions is obvious, and Wangjing is a mature gathering place for technological innovation companies. Therefore, despite the shortage of supply, the demand for office buildings in the area continues to be strong following the Shuangjingfang project in Singapore.

Allianz Real Estate now serves as co-asset manager on the investment project for the second time. Over the past year, we have hired a number of China market experts to expand our team and help us directly manage our growing asset portfolio in China.” “Beijing.

Real estate investment in Shanghai, Shanghai and Guangdong is very quiet," said Hu Jianming, senior director of Savills North China and head of the appraisal department. "In the past, real estate companies acquired land quickly, built houses quickly, and closed the property quickly.

Money, but it’s different now; in the past, the most important criterion for judging whether a real estate company was good was its land bank, but now it’s the inventory turnover rate and current ratio.” In this environment, the role of real estate companies has changed from development to development.

Due to the impact of asset operations, Beijing's bulk investment market continued to remain active in the third quarter.

Li Xiang, assistant director of Savills North China and head of the market research department, called it "outstanding".

Specifically, in the third quarter, the city recorded 9 large-scale transactions. The types of assets traded mainly focused on different categories such as office buildings, shopping malls, and second-hand land.

Due to its characteristics such as stable investment returns and good room for asset value appreciation, office buildings are still the most popular property assets. Both developers and institutional investors are optimistic about the future development of office assets in Beijing.

Overall, Beijing’s real estate market will still have certain growth potential in the future.

In this regard, Anton Mak, Chairman of Savills North China, said: "In the 30 years of China's real estate market development, the real estate industry has developed from an embryonic stage into a pillar industry and has become an important part of China's urbanization process.

However, as time goes by, the role of real estate is also changing, and it is gradually changing from a main driver of economic growth to a pressure.

Capstone and stabilizer. Especially in the third quarter, the Chinese government made it clear that real estate will not be used as a means to stimulate the economy in the short term, indicating that the real estate industry is returning to rationality. In fact, from a long-term perspective, China's economy is still growing steadily.

Real estate will continue to maintain a certain degree of growth for a long time to come.