Mapletree Investments Pte Ltd (Mapletree) announced that its US$1.16 billion private real estate fund, Mapletree India China Fund (MIC Fund) has entered into a binding agreement with Hong Kong-listed REIT, RREEF China Commercial Trust (“RREEF CCT”) to acquire 100% of the special purpose vehicle holding legal and beneficial title to the property Beijing Gateway Plaza. The acquisition price is based on a value RMB 2.9 billion. This acquisition is subject to approval by unit-holders of RREEF CCT.

Hiew Yoon Khong, CEO of Mapletree said, “We are delighted to add this landmark building in Beijing to our portfolio. Beijing Gateway Plaza is an attractive investment for us. It is a premium Grade A office building located in Chaoyang District, within Beijing’s Lufthansa area, which is one of the four established business districts within Beijing. The building is one of the best located and designed buildings in Beijing and it has a diverse tenant base that includes major multinational corporations and domestic enterprises.”

He added, “China is an important investment market for us and with Beijing being the capital city of China; we are confident that the demand for good quality office space will continue to grow. There is limited new supply of Class A office space over the next few years and we expect occupancy and rental rates to trend upwards.”

This acquisition marks MIC Fund’s fourth investment in China, and its second acquisition of a prime office building in Beijing. The first was the former Motorola Tower (now renamed Mapletree Tower), also located in Chaoyang District. Its other investments in China include a mixed-use retail and residential development in Xi’an called Future City and another mixed-use business and lifestyle development called Nanhai Business City in Foshan. Together with this latest acquisition, the total combined value of MIC Fund’s portfolio is now about US$1 billion. 

Completed in August 2005, Beijing Gateway Plaza is a premium office building with a total above-ground gross floor area of approximately 102,735 sqm. It comprises two 25-storey office towers connected by a three-storey retail podium and 3 levels of car-park below ground. It features large floor plates ranging from about 1,500 sq. m to 2,300 sq. m.

The building is located at the corner of East Third Ring Road and Airport Expressway and is sited within the prime location of the Third Embassy business district in Beijing.  Gateway Plaza has a tenant base of multinational corporations and domestic enterprises.

Mapletree India China Fund (MIC Fund) is a dual-country total return fund which aims to capitalise on the growth potential of the economy and population in China and India. It was specifically set up to invest in growing real estate opportunities in these two countries and focuses largely on the investment and development of office, retail and residential real estate within these two mega emerging markets. The fund raised a total of US$1.16 billion in committed capital.