Colliers Assists the Successful Closing of the Innov Tower Project
Recently, Colliers successfully closed the deal on Innov Tower, a landmark project in Shanghai Caohejing Hi-Tech Park. This project is a unique, high-quality R&D office building future appreciation potential in the Shanghai business park market. The acquirer of the project is Yuanlian Fund, a leading specialist in innovative real estate finance in China. This transaction further demonstrates Colliers’s dominant position in the Shanghai business park investment market.
The Shanghai business park market has grown rapidly in recent years, and even with the impact of the coronavirus pandemic, the market has taken precedence over the office market in its recovery. 2021 saw net absorption of nearly 520,000 sqm in the first half of the year, with net absorption expected to increase by 60% year-on-year. This reflects the positive development of Shanghai's high-tech industry, represented by electronic information and by the medical and health industries, under the promotion of domestic and international dual-cycle economic development strategies. Business parks with comprehensive industrial support and operation service mechanisms have a better industrial aggregation effect. The leasing demand continues to be strong and the properties have growing rental income. Therefore, high-quality properties in the Shanghai business park market have long been favored by institutional investors.
Located in the core area of Caohejing Hi-Tech Park, Innov Tower is a landmark building with 28 floors and 40,445 square meters of above-ground floor area. The project is close to the rail line 9 and is conveniently connected to the Central Link, which provides excellent accessibility.
Through years of cultivation by the original owner, the project has maintained a high occupancy rate and the anchor tenants include many world-renowned enterprises. The project has also recently completed the renovation of the common areas to further enhance the property. Despite the impact of the pandemic on the overall market, Innov Tower has achieved double growth in unit rental rates and net operating income.
This project is a unique high-quality business park office building in the Shanghai business park market, with a stable cash flow, high-quality tenants, comprehensive supporting facilities, and high commercial value.
Caohejing Hi-Tech Park is one of the most developed state-level economic and technological development zones in Shanghai, enjoying national policy support and preferential policies. With complete infrastructure for business and commercial facilities, it is currently one of the fastest developing areas in the state-level development zones. It also sees the highest investment and output per unit area. In Shanghai Xuhui District's 14th Five-Year Urban Development Plan, Caohejing Development Zone is an important growth engine driving the high-quality development of the city, and it is one of the six important areas on which Shanghai is building a scientific and technological innovation center with global influence.
Established in 2017, Suzhou Yuanlian Investment Fund Management Co., Ltd. is a real estate finance platform jointly established by Sungent Holdings Group, a large state-owned enterprise owned by Suzhou Industrial Park, and GSUM Fund as a shareholder with the support of Suzhou Industrial Park Administrative Committee.