China Office Fund

Singapore’s GIC To Invest In US$1.4b China Office Fund

CHINA – A source revealed that Singapore’s sovereign wealth fund GIC will be 1 of 4 investors in a US$1.4 billion China office property fund that will be injected with 2 developments bought from Beijing-based private equity firm Sino-Ocean Capital’s parent company Sino-Ocean Group, reported Mingtiandi on Thursday (14 October).

According to a filing by Sino-Ocean Group with Hong Kong’s bourse on Tuesday, the new fund known as Sino-Ocean Prime Office Partners I will get US$1 billion in committed capital from 3 major investors, all of which are either sovereign wealth funds or institutional investors. But Sino-Ocean Group, which will also inject US$400 million to the fund, declined to name the other 3 investors.

Nonetheless, sources privy to the transaction disclosed to Mingtiandi that one of them is GIC, Singapore’s US$744 billion sovereign wealth fund, while another one is a financial firm connected to Hong Kong’s government.

Notably, the China office property fund will mainly invest in Grade A office developments in Beijing’s downtown areas, including the 2 aforementioned projects in Chaoyang district, namely the completed Ocean Office Park complex and the ongoing office development called Project Z6.

Situated within Beijing’s core central business district (CBD) at the intersection of West Jintong Road and South Jinghua Street, the Ocean Office Park was built in 2009. The office development has a gross floor area (GFA) of about 108,000 sq m and is presently owned by a real estate fund in which Sino-Ocean Group controls a 50 percent stake.

On the other hand, Project Z6 is wholly owned by Sino-Ocean Group and construction work commenced in October 2020. It stands on a 11,007 sq m land plot and it will have a GFA of 128,000 sq m once it is finished.

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