Amcorp to enter Shanghai property market

By TMR / Graphic By TMR

Amcorp Properties Bhd will invest up to RM66.19 million for a 35% stake in a joint-venture (JV) company that will invest in China’s property market.

In an exchange filing yesterday, the property group noted that it has entered into an investment term sheet with Chelsfield Asia Fund 1 Ltd Partnership to set up a JV to acquire 9,769.43 sq m of office space spread across five floors in Nanjing West Road, Shanghai.

The move is part of Amcorp’s strategy to diversify its property portfolio and to explore niche developments in high growth international markets, while leveraging on Chelsfield’s experience and branding.

The initial tenure of the co- investment is four years upon execution of the agreement, with two additional one-year extensions available, while the venture parties are aiming to enter into a definitive agreement in the next three months.

If Amcorp’s capital commitment is to exceed the initial allocation, the company can opt not proceed with the co-investment. — TMR