Private equity giant the Carlyle Group has announced the acquisition of the Central Plaza for US$267 million. The Shanghai office addressed edifice was bought from Forterra Trust, the Singapore listed real estate fund.
More and more private equity firms are snapping up properties in China, especially in the commercial real estate market. Amongst them is Blackstone Group LP with its purchase of a 50,000 meter Huamin Imperial Office Tower and its five star complex attachments. The whole purchase had a price tag of US$1.1 billion.
Carlyle is an American private equity firm that specializes in buyouts and corporate trades. It currently has a portfolio of US$170 billion in assets. The acquisition of the building was made at a discount of 8% of its value until the end of 2012. The building is a nineteen storey office tower with Grade A standing located in the central business district of Shanghai. It also has a reported occupancy rate of 99.8% as of December 31, 2012.
For its part, Forterra would use the proceeds of the sale to complete another project, repay debts and boost overall liquidity.
Join the Conversation