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“SEB Asset Management today said it has sold Cross Tower in Shanghai to a fund managed by Ascendas, a Singapore-based real estate company. The sale was aimed at unlocking the value of the office building in view of the strong demand for Chinese commercial properties. The parties agreed not to disclose the selling price.
Cross Tower in Fuzhou Road was acquired in September 2007 as a 50/50 joint venture with Pacific Star’s Asia Real Estate Income Fund (AREIF) and the SEB Asian Property Fund SICAV-FIS. Valuation of the tower has increased substantially since then because of asset enhancement works by the joint venture which included a change in tenant mix that led to rental reversions upwards and high occupancy levels.
Cross Tower is located in Puxi district, in the immediate vicinity of the People’s Square, a well-knownShanghai landmark. The total rental space of 41,267 m² is spread across 24 floors and is complemented by approximately 160 underground parking spaces. The main tenants include Axa, Armstrong, Dun & Bradstreet and Sino Life Insurance. In addition, the elite club M1NT is located on the top floor and the roof terrace.
The SEB Asian Property Fund was launched in August 2007 as an open-ended real estate fund under Luxembourg law as a special fund with a select group of institutional investors. With net fund assets currently running at approximately EUR 250.9 million, the Fund is still in the investment period. After the sale of Cross Tower, the portfolio has been reduced to four properties (two in Singapore and two
in Japan). The proceeds of the sale in Shanghai are to be reinvested in Asia”. (CS della Società).
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