InfraRed NF, the leading Greater China real estate investment manager, is pleased to announce the acquisition of an 84% equity stake in Project Sycamore, a US$112 million mixed-use complex in Shanghai together with Collab, a Shanghai-based value-add investment and asset management firm. The project was acquired from a local NPL asset management company at a discount to replacement cost.
Located in the French Concession area, the cultural and historical heart of “Old Shanghai”, the project sits within the Xuhui creative office cluster, surrounded by some of the city’s well-known urban renewal examples, and is a 10-minute walk to three metro stations.
The mixed-use complex has a GFA of 18,466 sqm and comprises four separate commercial buildings and a central courtyard. Originally built as a silk factory, the property was subsequently converted for commercial office and retail use. The condition of the property has since deteriorated, and it is currently vacant.
InfraRed NF will implement a value-add strategy to revitalise the property’s exterior, undertake structural strengthening works and reposition the property to attract tenants from the cultural, creative and technology innovation sectors, as well as high-end retail and F&B services. The outdoor space and central courtyard will be designed to encourage interactions between office, retail and F&B tenants. Green building systems (LEED or WELL) will be embedded in the design and renovation process to ensure the sustainability of the project and its neighbourhood.
This is the fourth value-add acquisition that InfraRed NF has completed in Shanghai, in line with InfraRed NF’s strategy of acquiring well-located but under-managed commercial assets in Tier-1 cities and adding value through change of use, upgrading and active asset management.
Hans Kang, Chief Investment Officer of InfraRed NF, commented:
“This is another showcase of our strategy to acquire well-located but distressed or under-performing assets disrupted by technology and new economy, at discount to replacement cost, and generate value by creating spaces catering for the new economy and the evolving work and lifestyles of a new generation. There is a growing, sustainable and scalable opportunity to capitalise on in Tier 1 cities in China, particularly in Shanghai, the largest commercial city of China.”
About InfraRed NF
InfraRed NF is a joint venture between InfraRed Capital Partners and Vervain. Established in 2007, InfraRed NF is a leading investor in Greater China real estate with a proven track record of delivering superior returns through a combination of mezzanine financing and value-add investing. InfraRed NF has invested US$1.9 billion across 25 transactions in Greater China.
InfraRed Capital Partners is a leading global investment manager focused on infrastructure and real estate. It operates worldwide from offices in London, Hong Kong, New York, Seoul and Sydney and has launched 18 funds including two listed companies on the London Stock Exchange. With c.160 professionals, InfraRed Capital Partners manages US$12 billion of equity in multiple private and listed funds, primarily for institutional investors across the globe.
Vervain (which includes entities operating under the former name of “Nan Fung China”) is a private company established in 2004 and based in Hong Kong. Vervain has a diversified real estate business, including property investment, property development, project management and real estate private equity investments. Vervain’s property portfolio comprises high-quality residential, commercial, industrial, serviced apartments and hotel projects in Hong Kong and other global cities including London, New York, Seoul, Tokyo and Da Nang. The company’s financial investments include global equities, fixed income portfolios and fund partnerships.
