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Beijing: SK Building was sold for RMB9 billion, office market sentiment remained positive

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According to the public announcement by Hexie Health Insurance in early June, the company has invested approximately RMB9 billion to acquire the 100% equity of Beijing Xinjincheng Real Estate Management Co., Ltd., thus becoming the new owner of SK Tower. The deal set a new record for the capital market nationwide since the pandemic.

Located in the CBD Submarket, SK Tower is an office tower with a GFA of over 100,000 square metres (sq m). As one of top-three core submarkets (Financial Street, Zhongguancun and CBD), CBD is the primary area for finance, technology information and business service. Tenants from these sectors have been the demand drivers for offices in the area with foreign companies accounting for a large proportion of the tenant profile. 

Colliers Commented:

In the first half of 2021, the overall performance of Beijing’s investment market remained stable with office sector being particularly active.. In the post-pandemic era, domestic and foreign institutional investors as well as developers are all actively searching for stable assets with sound investment returns, in addition to those with value-add potentials to optimize investment allocation. In recent years, insurance companies are also tapping into the commercial property market, searching for high-quality real assets, particularly office properties with stable return.

Office properties are mainly the highly-sought-after assets in Beijing’s investment market in this quarter. With the gradual recovery of the economy, as well the stable demand, investors’ sentiment toward Beijing’s office market remained positive.