BlackRock sells Exchange Tower to Gaw Capital


London, 29

September 2014– BlackRock has completed the sale of Exchange Tower to a group of Asian investors led by GAW

Capital Partners

for £191million, equating to £395 per square foot.


by BlackRock Europe Property Fund III in 2010, Exchange Tower comprises 490,000

square feet of office accommodation over 16 floors. BlackRock undertook a

comprehensive refurbishment of common parts and completed a turnkey

refurbishment on behalf of the anchor tenant, which now occupies over half of

the building. As a result occupancy has improved to 98% from 73% at

acquisition. The transaction was structured as a forward sale to Gaw Capital

and was agreed in April this year, in advance of completion of the works.

Commenting on the sale, Chris McCormack, Director

at BlackRock Real Estate in the UK, said: “The spread between prime and

non-prime real estate across London continues to provide opportunities to

generate returns for institutional investors. We are pleased to have delivered

on our original business plan and achieved a significant total return during

the four-year investment hold period.”


“By upgrading the facilities to give the space an

ultra-modern look and feel, we have been able to attract a number of high

profile tenants, as well as securing interest from long-term capital buyers

such as Gaw Capital.”



Real Estate is the dedicated real estate investment group within BlackRock and invests in strategies across the

risk and return spectrum, providing access to all major property types. The

business manages over $24 billion of private and public real estate equity and

debt on behalf of investors worldwide in 17 offices across 11 countries in

Asia-Pacific, Europe and the US. Investment structures include commingled

funds, co-investments, joint ventures and customised separate accounts.


Gaw Capital Partners acts as the advisor and

co-investor in this deal for Korean

Teachers’ Credit Union and a pool of other

Asian investors. It is the fifth acquisition in London led by

Gaw Capital Partners on behalf of its Asian clients and is its ninth separate

account direct investment since 2010.

Other notable transactions in London include Vintners’ Place in London

in 2012, the Lloyd’s Building in London in 2013 and Waterside House in

Paddington London in 2013.


Goodwin Gaw, Managing Principal and Chairman of Gaw Capital Partners,

said “As an active player in the real estate market in greater China and Asia

Pacific, Gaw Capital Partners is seeing more opportunities to assist Asian

Investors going overseas. London is one of the key global gateway cities with

high liquidity. The combination of attractive yield, trophy quality asset, and

attractive long term debt, makes London a particularly compelling market for

core real estate investments.”