CapitaLand unlocks value from Shanghai office asset swap

The move came as the city recorded a pickup in demand.

RHB said CapitaLand's recent office asset swap with the divestment of Innov Tower and the acquisition of Guozheng Centre is slightly positive for the group.

According to the brokerage firm, it allows CapitaLand to unlock value from a mature stabilised asset and at the same time, gain entry into a newly-completed property of similar quality at lower price levels.

More so, the move comes amidst a pickup in demand for properties in Shanghai’s Fringe CBD.

"Fringe CBD assets are becoming particularly attractive to cost-conscious CBD tenants looking to consolidate or expand, as well as to companies that are seeking upgrade options from older properties. Decentralised office rents in Shanghai rose 4.4% YoY last year, while CBD rents showed a slight decline in 2H16 after strong 1H16," RHB said, quoting a JLL report.