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Mitsui & Co. to Participate in Office Building Renovation Project in Shanghai, China

Feb. 14, 2019


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Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) and Ascendas-Singbridge Group ("ASB", Head Office: Singapore, Group CEO: Miguel Ko) will jointly collaborate in an office building renovation project in central Shanghai, China, and have recently entered into agreements relating to their investments in this project. The project comprises partial renovation of two existing office buildings, Ascendas Plaza ("AP Building") and Ascendas Innovation Place ("AIP Building"). Mitsui will also acquire a 45% stake in an investment vehicle established by ASB. Total investment in this project will amount to approximately ¥18 billion.

The AP Building is located in XuJiaHui district, one of Shanghai's most vibrant business districts. In recent years, there has been many accelerating redevelopment activities centering on the district's metro station and such trend towards further developments often promises greater transformation.

The AIP Building is adjacent to the People's Square and the Nanjing Road Pedestrian Street. The area, which stretches from the People's Park to the Bund, has a long history as one of Shanghai's biggest and best-known shopping and entertainment districts. Located about five minutes' walk from two metro stations (four lines), both AP Building and AIP Building offer extremely convenient access.

Workstyle diversification has led coworking and flexible workspace providers to expand their operations in various countries, including the United States of America and Japan. And in recent years, the coworking market has expanded fast in China. Tenants in the AIP Building currently include thebridge, a flexible workspace provider and subsidiary of ASB (this is thebridge's first foray into the coworking market in Shanghai), and Naked Hub, a subsidiary of the world's biggest flexible workspace operator, WeWork.

ASB is a leading provider of sustainable urban development and business space solutions with Assets Under Management exceeding S$20 billion. It undertakes projects spanning townships, mixed-use developments, business/industrial parks, offices, hotels and warehouses. Headquartered in Singapore, ASB has a presence across 11 countries in Asia, Australia, Europe and the United States of America. This will be the fourth collaboration undertaken by Mitsui and ASB, after the Galaxis building project and the redevelopment of 79 Robinson Road in Singapore, as well as the Nusajaya Tech Park project in Malaysia's Iskandar Area.

Mitsui has worked to build revenue-based real estate business models in Japan and overseas, including the development of office buildings, logistics facilities and the REIT management business in Japan, the development of logistics facilities in China, and the development of business parks and office buildings and the management of REITs specialized in industrial facilities in Singapore. Mitsui will continue to expand its revenue-based real estate business, including office buildings, logistics and industrial facilities in China and throughout Asia.

Location Map

Location Map

Overview of AP Building

Name Ascendas Plaza
Location 333 Tianyaoqiao Road, Xuhui District, Shanghai, China
Transportation 5 minutes' walk from Shanghai Stadium Station (metro Line 4), 7 minutes' walk from Xujiahui Station (metro Lines 1, 9, 11)
Uses Office space (partly commercial)
Site area Approx. 6,810m2
Floor area Approx. 44,003m2 (27 aboveground floors, two basement levels)

Photographs of the Property

Photographs of the Property

Overview of AIP Building

Name Ascendas Innovation Place
Location 686 Jiujiang Road, Huangpu District, Shanghai, China
Transportation 5 minutes' walk from People's Square Station (metro Lines 1, 2, 8), 7 minutes' walk from East Nanjing Road Station (metro Lines 2, 10)
Uses Office space (partly commercial)
Site area Approx. 2,521m2
Floor area Approx. 24,883m2 (14 aboveground floors, two basement levels)

Photographs of the Property

Photographs of the Property

Information

For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Corporate Communications Division
Satoshi Wanouchi
Telephone: +81-3-3285-6645
Facsimile: +81-3-3285-9819