AmProp teams up with UK’s Chelsfield to invest in office properties Shanghai

April 16, 2018 | By | Reply More

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PETALING JAYA: Amcorp Properties Bhd (AmProp) plans to invest up to RMB107 million (RM66.19 million) to collaborate with Chelsfield Asia Fund 1 Limited Partnership to buy office properties in Shanghai, China, as part of its strategy to diversify its property investment and development portfolio.

The parties, as co-investors, intend to acquire five floors of strata office properties with a total gross floor area of 9,769.43 square metres in Llland Tower in Shanghai.

In a filing with Bursa Malaysia today, AmProp said it has entered into an investment term sheet with Chelsfield, to express their intention to collaborate and set up a joint venture (JV) for the investment.

Chelsfield is a closed-end private investment vehicle established by Chelsfield Asia GP 1 Limited in June 2017, to undertake value add investment opportunities in Hong Kong, Shanghai, Singapore and Tokyo. It is part of London-based real estate investment and asset management firm Chelsfield Group.

AmProp or its designated subsidiary intend to commit capital of up to RMB107 million for a 35% stake in the JV company, which may be provided to the JV company in the form of equity and/or shareholder loans.

The initial tenure of the proposed co-investment is four years from the execution of the co-investment agreement and may be extended for up to two additional one-year periods.

A co-investment agreement is expected to be signed within three months.

AmProp said the proposed co-investment is an impetus to embark on niche developments in high growth international markets such as Shanghai.

This follows the group’s profitable ventures in London and Tokyo. The group would also leverage on the experience and branding of Chelsfield, and expects the venture to contribute positively to its future earnings.

Chelsfield Asia Management Company Limited or its affiliate will be appointed as the manager for the JV company under a separate management agreement.

AmProp’s share price closed unchanged at 67.5 sen yesterday with a total of 179,900 shares traded.

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