Amcorp Properties commits RM96mil for Shanghai property

The Amcorp Mall with its office towers service apartments block have been a prominent landmark in Petaling Jaya. It is one of many properties owned by AmCorp.

PETALING JAYA: Amcorp Properties Bhd (AmProp) has committed RM96mil for its stake in the acquisition of four blocks of office buildings in Daning International Commercial Plaza, Shanghai, China.

Under the corporate exercise, AmProp will take a 40% stake in the joint-venture company, Daning Partners Ltd, where it has committed US$22.95mil or RM96.18mil.

The other three companies which are involved in the acquisition are Chelsfield Asia Fund 1 Ltd Partnership, KHI Overseas Ltd and JRN Holdings Ltd.

AmProp said in a filing with Bursa Malaysia that its unit, Amcorp Dynamic Ltd, had inked a co-investment agreement with the three companies for the proposed purchase.

It noted that Daning Partners would purchase the properties for a total of US$57.38mil (RM240.45mil)from Time Best Global Ltd.

To recap, AmProp had co-invested with Chelsfield in July last year to make its maiden investment in Shanghai, where they bought five floors of strata offices in Llland Tower.

The co-investment is part of AmProp’s strategy to expand its property investment portfolio in the high-growth commercial real estate segment of Shanghai.

“Through the co-investment, AmProp would be able to leverage on the experience and branding of Chelsfield in diversifying its international property investment and development portfolio.

“The properties are located in Daning area, which is one of the growing established decentralised areas in Jing’an District, Shanghai, ” it added.