08 October, 2010
International property adviser DTZ facilitated a cooperation agreement signed between Shui On Construction and Materials Limited (SOCAM, HKSE Stock Code: 0983) and Ping An Property & Casualty Insurance (Ping An) regarding the property of Central Point Phase II en-bloc, a quality office tower in Chengdu. According to the terms and conditions of the agreement, should they come into effect, the property is expected to become Ping An's headquarters in south-western China in support of the company's future development.
Central Point is located along Ren Min Road South Section, the new central business district of Chengdu, close to the city centre and is on the south shore of Jinjiang. Phase I of the project consists of an existing 35-storey tower comprising office and serviced apartments, while the adjacent Phase II is being developed into a 31-storey office tower, with a total GFA of 120,000 sq m of the entire Central Point. A ceiling height of 4.2 m and the use of the innovative NetFloor cable management flooring are only two of the many features of this super grade A office building. It is also the first project in Chengdu to be awarded a pre-certificate of LEED (Leadership in Energy and Environmental Design) by the US Green Building Council. The emphasis on green design speaks volume of SOCAM's dedication to bringing high yield both in property value and sustainability for the property's tenants, investors and the city of Chengdu.
Francis Li, DTZ's Vice President and Head of Investment, Greater China, commented, "The agreement reflects the opportunity for Chinese insurance companies to venture in domestic real estate projects under the new insurance policies, and more institutional investors are expected to join the rush. Against this backdrop, the quality en-bloc office buildings in downtown Chengdu with a limited supply become an attractive option for investors to advance their business profile as well as investment strategies."
Alvin Yip, DTZ’s Co-Head of Investment, China, said, “The property investment market of China continues to enjoy an upbeat outlook. DTZ has already completed eight major investment transactions in 2010 thus far, with a total consideration of more than RMB5 billion. Five of these deals were recorded in China’s second tier cities of Chengdu, Dalian, Foshan and Kunshan, which is a sign that investment funding is actively participating in second tier cities."
DTZ maintains a close working relationship with SOCAM, completing five property transactions for the client over the past three years that notched a total consideration of RMB4.3 billion. These transactions included residential, sites and office.
We also strive to strengthen our connection with Chinese insurance companies to build a wider business network. Earlier this year, DTZ helped purchase a shopping centre in Chaoyang District, Beijing, for Minsheng Financial Leasing Co Ltd.