Allianz announced today that it has acquired ZLink, a 31,426 sqm grade-A office asset located in Zhongguancun, Beijing, in an all-cash deal. The asset has been acquired from KaiLong Group and Goldman Sachs.
The transaction was conducted by Allianz Real Estate, the EUR 56 billion real estate investment and asset manager of the Allianz Group, on behalf of several Allianz companies. Allianz will own 98% of the equity, with the remainder to be held by KaiLong Group.
ZLink is 100% occupied and leased to leading Chinese technology companies, including Baidu. The asset is located in the heart of Zhongguancun Software Park in the Haidan District of Beijing. The park is a hub for international and domestic technology companies including Microsoft, IBM, Lenovo, Baidu and Didi, among others. The area is home to top universities like Peking University and Tsinghua University.
“The ZLink deal underscores our strategy to align our investments with the secular growth of the new economy in China, driven by the IT, technology and innovation sector. Zhongguancun area is a sought-after hub for IT and technology companies. Over the last 5 years the Zhongguancun Software Park has seen strong rental growth and one of the lowest levels of vacancy in Beijing,” said Rushabh Desai, CEO Asia-Pacific at Allianz Real Estate. “As Allianz Real Estate’s first investment in the Beijing office sector, the acquisition provides compelling diversification benefits to our office portfolio in China.”
The acquisition of ZLink builds upon a number of recent deals in Shanghai by Allianz Real Estate, including the investment in Trinity Tower in Hongkou District and Sky Soho in Hongqiao District.
Heiming Cheng, Chairman of KaiLong Group said, “We welcome the partnership with Allianz. After successfully managing the ZLink asset for several years, we are excited to further partner with Allianz Real Estate to take this asset to the next level."
DLA Piper and Ernst & Young acted as advisors to Allianz.