The fund realised a rate of return of close to 20% due to the sale.
Alpha Asia Macro Trends Fund II (AAMTF II), managed by Keppel Capital’s private fund manager, sold its 100% interest in Shanghai International Plaza, an office and retail mixed-use property.
Alpha CEO Alvin Mah said, "In the AAMTF series, we seek to create value and drive returns through innovative asset management and proactive leasing strategies. For Shanghai International Plaza, our rigorous value creation initiatives have allowed us to realise an internal rate of return of close to 20% on the sale of the investment. This follows Alpha's successful sale of another mixed-use property, Life Hub @ Jinqiao, in 2016, which generated an internal rate of return of over 20%.”
AAMTF II acquired Shanghai International Plaza in 2014 for a consideration of approximately US$133m and repositioned the property to attract more diversified tenants through “active value-adding and enhancement works.”
Shanghai International Plaza is situated at the junction of two major thoroughfares, Sichuan North Road and Wujin Road in Shanghai's Hongkou District. The property has a gross floor area of approximately 56,000 sqm and has an office space spread across 24 storeys.
“The AAMTF series is designed to ride on megatrends driving long-term growth in Asia-Pacific, which include urbanisation, growing consumerism and intra-regional tourism,” Alpha said.
AAMTF III, the third value-add Pan-Asian fund in Alpha’s flagship series, was launched in 2016 with a target size of US$1b. As at end-2017, Alpha has raised over US$560m.
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