Asia, 27 April, 2017 - Colliers International (NASDAQ: CIGI; TSX: CIGI), a global leader in commercial real estate services, has successfully concluded the disposal of Central Park in the fringe CBD of Shanghai, highlighting the strength of the office investment sector in the city.
Colliers’ Capital Markets and Investment Services (CMIS) business facilitated the sale of the 31,700 sq m office building on behalf of Hong Kong Shanghai Alliance (1001.HK) to BlackRock, the largest listed investment management group in America with 70 offices in 30 countries around the world. The property is a high quality office building located in the Putuo district of Shanghai. This transaction was Colliers’ first deal with Hong Kong Shanghai Alliance.
Betty Wong, Executive Director and Head of Capital Markets and Investment Services for Colliers International in China, commented: “The successful transaction of Shanghai Central Park has fully demonstrated Colliers’ rich experience and strong capability in office asset investment. We believe that as infrastructure is further improved in the Changshou Road area, it will attract more office tenants with the intention of controlling costs by moving out of core CBD. Therefore, we expect the rental level in this area to rise accordingly and the value of office buildings to subsequently increase.”
According to Colliers’ research, the investment outlook for Shanghai remains positive, with the office sector being a major focus. After Shanghai Central Park was renovated in 2015, the overall occupancy rate reached as high as 90%. The rental performance of the project has been very strong, and this is expected to strengthen further due to the construction of Beiheng Tunnel and Metro Line 14.
The project is in close proximity to Wuning Road Metro Station, where Line 13 will intersect the future Line 14. This transfer station will provide Central Park with direct access to all major business areas in Shanghai. Central Park is also surrounded by numerous high quality office buildings and shopping malls.
Terence Tang, Managing Director for Capital Markets & Investment Services, Asia at Colliers International, added: “This transaction indicates that Shanghai continues to be an attractive investment destination amongst Asian markets. The stabilised Chinese economy and containment of Chinese capital flow will continue to augur well for mainland China real estate. We will see both local and pan Asia Institutional capital continue to invest actively in China.”
Shanghai Central Park Building
Aboveground GFA: 31,697 sq m
Office area: 26,832 sq m
Commercial area: 4,864 sq m