SHANGHAI – April 8,
2014 – Real estate private equity firm Gaw Capital Partners has announced
that a company owned by funds
under management has signed a conditional Sale & Purchase Agreement to acquire one of Beijing’s
premier properties: Pacific Century Place.At an initial consideration of US$ 928 million (subject to adjustments), this
significant acquisition is the biggest single asset transaction invested by a
foreign real estate private equity fund in China.
Century Place, connected directly to the Tuanjiehu Stationon Metro Line 10, is well located south
of the Gongti North Road in the popular Sanlitun area. The Sanlitun area
contains many of Beijing’s
trendiest bars and restaurants and is a popular hangout for affluent locals and
expats. The property is located right along the East 3rd Ring road, nestled
between the CBD area and the Lufthansa District, giving it easy access to the
Airport and other major destinations.
This approximately 169,900
square-meter asset comprises of two towers of offices, two towers of serviced apartments
and a shopping mall. Gaw Capital Partners plans to implement active
asset management to the property, bringing it to its full potential. Other properties Gaw Capital Partners have invested
in and/or managed in the area (both past and present)
include Taikoo Li in Sanlitun, Hotel G Beijing, and Embassy House, giving it
hands-on understanding of the neighborhood.
Kenneth Gaw, President and co-founder of Gaw Capital Partners said
of the acquisition: “This is a rare opportunity to be able to acquire such a large cash flow asset in a prime and
irreplaceable area in Beijing. We believe this type of asset will continue
to outperform,” Gaw said. “Its diverse cash flow stream with retail, office,
and residential elements provides excellent downside protection,” Gaw said.
Humbert Pang, Managing Principal and Head of
China for Gaw Capital Partners said: “This is a wonderful opportunity to leverage
Pacific Century Place’s extremely convenient and accessible location next to
the subway and its proximity to Sanlitun, one of Beijing’ s most popular and
bustling retail locations,” Pang said. “The
Project will provide a diversified income stream with long-term rental and
capital appreciation potential at a location which is perpetually attractive to
office, retail and serviced apartment tenants.
It would also provide us an opportunity to showcase what we’re known
best in the market for – to bring value-add to properties through creative yet prudent asset management.”
Gaw Capital Partners has raised equity in excess of US$3.8
billion since 2005 and currently commands assets of US$ 8.5 billion under
management encompassing residential developments, retail centers, hotels and
commercial properties. Gaw Capital Partners
was named Asia Firm of the Year 2013 by Private Equity Real Estate (PERE). PERE
also named Gaw Capital Partners’ Chairman and co-founder, Goodwin Gaw, Asia
Industry Figure of the Year 2013. Gaw Capital Partners had
an extremely productive year in 2013 by achieving a transaction volume (including selling and new acquisitions)
of USD 3.21 billion, combining all three of its services: Asia Gateway Funds; US
Fund; Separate Accounts.