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.
Acquired 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.”
BlackRock 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.”


Gaw Capital Partners, through its funds under management, and its consortium partners, acquired 29 Hong Kong-based community shopping centers and associated facilities in March 2018 and March 2019.
Gaw Capital Partners officially started to operate over 29 assets and facilities near the public estates and established “People’s Place”. “People” stands for the public and the residents, whereas “Place” here is an allusion to the idiomatic Chinese term for a location of virtue and tradition, as well as a well-governed community; “Place” also connotes the solidarity of the local neighborhood. All in all, “People’s Place” stands for a place rich in sentiments and compassion, bringing strangers together in constructing a vibrant, cozy living environment. People’s Place aspires to transform obsolete commercial facilities into vibrant community hubs by creatively utilizing its space and bringing brand new experiences to residents, tenants and community stakeholders.
In partnership with experienced educators in China, Gaw Capital has invested in the development and operations of Stellart International School of Arts (SISA), an international arts education platform in China. The platform is initially seeded by a commercial site conveniently located in Sanshan New Town in Nanhai, Foshan, which has excellent connectivity nationally via the Guangzhou South Station. The site has a GFA of c.50,000 sqm in total. Operating under the SISA brand and developed by Gaw Capital Partners, the school houses up to 600 full-time high school students in its 6-storey tall academic block and 7-floor dormitory. 
