Real estate private equity firm Gaw Capital Partners-led consortium, including Schroder Pamfleet, BOC Life, Rafi Investments (Asia) and other partners, has completed the acquisition of Cityplaza One from Swire Pacific and Swire Properties.
The acquisition price of the office tower is HK$9.845 billion (appr. US$1.27 billion), amounting to an average price of around HK$15,609 per square foot, following an agreement signed on November 9, 2020.
”Separately, Manulife and Gaw Capital Partners have entered into definitive documents, pursuant to which Manulife will join the consortium as the single largest investor subject to the satisfaction of customary completion conditions,” said Gaw Capital Partners in a statement.
“We are very excited to partner with Gaw Capital and other investors on this prime investment. Despite some of the headwinds resulting from the pandemic, we are continuing to focus our expansion efforts on high quality assets across major markets in the Asia Pacific region, which are supported by strong long-term macro and demographic prospects,” said Kenny Lam, Senior Managing Director, Head of Asia Real Estate Investments for Manulife.
“We would like to thank our investors and consortium partners for their continued support. The commitments we have received are a strong vote of confidence in Gaw Capital’s deal sourcing, and asset management capability. Followed by the purchase of stakes in Cityplaza Three and Cityplaza Four at the end of 2018, we are delighted to have completed the closing of Cityplaza One today, which is a strong addition to our commercial portfolio in Hong Kong, and further showing our confidence in the ongoing successful re-gentrification of Hong Kong Island East,” said Christina Gaw, Managing Principal and Head of Capital Markets of Gaw Capital Partners.
Completed in 1997 and located in the growing business center of Taikoo Shing in Hong Kong’s Eastern District, the 21-storey, grade A office tower has a GFA of around 630,000 square feet with direct walkways connecting the buildings to Tai Koo MTR station and Cityplaza shopping mall. Tenants on higher floors are able to enjoy the sea view of Victoria Harbour. With the Central-Wan Chai Bypass, the tower also provides quick and convenient access to the Central business district. Cityplaza One accommodates quality tenants including financial institutions, insurance companies and multinational corporations.
Gaw Capital Partners’ asset management team will be responsible for overseeing the operation of Cityplaza One beginning today and will ensure a smooth handover to maintain service quality.