Brookfield Property Invests in Shanghai Group

Brookfield Property Invests in Shanghai Group

Commercial News » Done Deals | By WPC Deals Team | October 31, 2013 1:19 PM ET

Brookfield Property Partners has agreed to invest $750 million in China Xintiandi, a wholly owned entity of Hong Kong-based developer Shui On Land. 

Established in 2012, China Xintandi controls Shui On Land's portfolio of office and retail assets in Shanghai, according to a company announcement. The investment will give Brookfield a 22 percent stake in China Xintiandi. 

In addition to the deal, the Canadian firm plans to secure up to $500 million for additional investments in China's commercial property. 

"The cornerstone investment in China Xintiandi provides Brookfield exposure to high quality assets in Shanghai while allowing an opportunity for future growth through asset purchases and strategic partnerships," Bill Powell, Australasian chief executive of Brookfield, said in the announcement. "China is an important market in Brookfield's long term growth."

The portfolio includes the "iconic" Xintiandi shopping and entertainment complex in Shanghai, China Xintiandi's premier property, and the surrounding office properties: Shui On Plaza and Corporate Avenue 1 and 2, the company said. It also includes Shui On Land's 200,000-square-meter mixed-use development, "The Hub," located in the middle of Hongqiao Transportation market.

Brookfield Property Partners controls a global portfolio with more than 300 office and retail properties with more than 250 million square feet of space. They also have interests in more than 20,000 multi-family units, 64 million square feet of industrial space and an 18 million-square-foot office development pipeline.

Earlier this year Brookfield raised $4.4 billion for a fund focused on commercial property in North America, Brazil, Europe and Australia.

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