Ascendas launches two Chinese funds

ASCENDAS is looking to tap into China's robust industrial and commercial real estate sectors through the launch of two funds valued at $S1.5 billion.

The Ascendas China Industrial & Business Parks Fund and Ascendas China Commercial Fund are expected to invest up to $S600 million in industrial and business park assets and $S800 million in commercial assets respectively.

ACIBPF seeks to invest in light industrial and logistics facilities including warehouses and distribution centres, software and IT related facilities, suburban business office buildings and business parks across mainland China.

Whilst ACCF seeks to invest in a portfolio of commercial properties in first-tier cities in mainland China.

The ACIBPF seed assets consist of Ascendas’ flagship project in China – the Xinsu assets, which are prime buildings and land in the renowned Suzhou Industrial Park, comprising 54 buildings with a total gross floor area in excess of 261,000 sqm.

The seed asset in ACCF comprises Ascendas Ocean Towers, a 25 level Grade A commercial office building with a lettable area of 50,192 sqm, located in the prime central business district of Huangpu in Shanghai.

Ascendas’ president Chong Siak Ching said the launch of these two funds opens up future opportunities for Ascendas China to contribute to China’s economic growth.

“The focused investment strategies of the two funds will fuel new opportunities to develop Ascendas’ fund management portfolio, including the potential of introducing a China real estate investment trust. We expect our funds strategy to further boost our presence in China and contribute to the growth and development of China’s real estate industry in the long term,” Ascendas chief executive in China Tay Eng Kiat said.

Australian Property Journal