ZLink, Beijing
Finding opportunity in a tricky situation with many moving parts
A mix of elements like the business instability caused by the COVID pandemic plus lease termination requests combined had the potential to drive up the vacancy level in this grade-A office asset in Beijing’s tech district. This was in addition to a 457-sqm unit on level 1 being historically difficult to lease due to its small size.
The solution
Our Asset Management Team agreed that a larger lettable space would be in higher demand and made the call to allow leases on smaller units to expire thereby creating the opportunity to combine several small units into a larger, much more appealing space. This attracted a high-profile tenant from China’s tech scene, meaning the asset is back to full occupancy, the tenant profile is much stronger and rental income is firmly aligned to the underwriting. A win-win!
What we are proud of
We were able to extract opportunities from the lease termination requests. Combining smaller units into a larger space ensured full occupancy, resolved the issue of the hard-to-lease unit on level 1 and did not compromise the rental underwriting. The profile of the tenants has also seen a marked improvement.
Facts & figures
| Asset name | ZLink |
| Country | China |
| City | Zhongguancun, Beijing |
| Asset type | Office |
| Investment type | Core Plus |
| Investment structure | Directly held, fully consolidated asset |
| Size | 31,426 sqm |
| Signing date | 2018 |
| Sustainability | - LEED Platinum Certification - Green leases in standard tenancy contract - Onboarding to Measurabl platform in progress to track energy consumption and do benchmarking |
| Investment | CNY 1.3 billion |