Dutch civil service pension fund subsidiary APG has invested euro 311 million in Chinese mall owner and operator Chongbang.
Canadian property investor Ivanhoe Cambridge has taken a euro 445 million stake in the Chinese business at the same time. The two companies will join Singapore sovereign wealth fund GIC on the shareholder register.
APG’s head of private real estate investments in Asia-Pacific region, Sachin Doshi, said the investment fitted with the fund’s strategy of investing in “city-specific platforms in key gateway urban centres around the world” and working with locally-based partners with local market expertise.
“Rapid urbanisation, growing disposable incomes and continued rebalancing towards domestic consumption are recurring themes in China, and Shanghai will lead this consumption story,” he said.
“We like Chongbang’s deep understanding of consumer preferences and the strong lifestyle themed retail complexes they have built and operated successfully under the Life Hub brand.”
Chongbang, based in Shanghai, was founded in 2003 by a group of Hong Kong and Singapore investors led by Henry Cheng, the company’s CEO, and Stephen Wong. The company now owns 428,000 sqm of mixed use retail and residential assets and commercial space in Shanghai. It was a further 417,000 sqm under development.
Cheng says Chongbang aims to more than double its portfolio in coming years, cementing its position as a preferred landlord for high grade retail and lifestyle tenants in Shanghai.
