Sino-Ocean Group plans to cooperate with several global sovereign wealth funds and institutional investors to jointly invest in a core office fund with a total scale of $1.4 billion.
The fund will focus on investment in mature Grade-A office projects in the core business districts of first-tier cities, according to an announcement issued by Sino-Ocean Group.
Sino-Ocean Property and Sino-Ocean Service will respectively serve as project and asset managers to ensure the development and operation quality of the properties under the fund; Sino-Ocean Capital, as general partner, will be responsible for the daily operation and management of the fund. When the fund is built, it will become the largest US dollar fund in the domestic office market.
Despite increasing global economic uncertainty, international capital is still optimistic about the long-term resilience of China”s economy, and office buildings located in the core areas of first-tier cities have become high-quality safe-haven assets. In the short and medium term, core office assets in the first-tier market have stable rental income and strong anti-cyclicity. On the other hand, in the long term, China’s economic transformation has brought various trends such as new urbanization, as well as industrial and consumption upgrades. With the release of more office demand and the implementation of urban renewal policies, the core offices of first-tier cities are expected to continue to maintain value-added capacity.
The establishment of this fund will help Sino-Ocean Group build mutual trust and stable cooperative relationships with world-renowned investors. It will also further enhance the Group’s investment and management capabilities. With a focus on alternative asset management, the urban renewal fund under Sino-Ocean Capital has reached 5 billion yuan ($770 million).
“Taking the establishment of the fund as an opportunity, Sino-Ocean Group will improve the synergy of all parties and give full play to its competitive edges in property service and finance. It will actively take advantage of the cooperation of global long-term investors to realize the preservation and appreciation of funds and assets, so as to create greater investment returns and high-quality sustainable development,” said Wang Honghui, CEO of Sino-Ocean Group.
Wang Hao contributed to this story
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