Gaw Capital Acquires Beijing’s Pacific Century Place For $928M

Hong Kong-based private equity real estate firm Gaw Capital Partners (listen and watch Gaw Capital’s founder Goodwin Gaw talking to China Money Podcast here) says that it has signed a conditional agreement to acquire a Beijing commercial property project called Pacific Century Place, for a total of US$928 million, according to a company statement.

Gaw Capital is acquiring 100% equity stake of the property via a shell company, Vinter Star Limited.

The investment is from Gaw’s Gateway Real Estate Fund IV. A number of the fund’s limited partners are co-investing in the deal.

The acquisition’s price represents an 8% premium over Pacific Century Place’s valuation at the end of 2013, which stood at US$860 million (HK$6.657 billion), according to public filings.

Pacific Century Place, an asset under Hong Kong-listed Pacific Century Premium Developments (PCPD), is located in Beijing’s Sanlitun shopping area.

The 169,916 square meter property is comprised of two towers of offices, two towers of serviced apartments and a shopping mall.

"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," Kenneth Gaw, president and co-founder of Gaw Capital Partners says.

Other properties Gaw Capital Partners have invested in or managed in the area include Taikoo Li in Sanlitun, Hotel G Beijing, and Embassy House.

Gaw Capital currently manages four real estate funds targeting the Greater China and Asia Pacific region.

Since its founding in 2005, Gaw Capital has raised over US$3.8 billion. Its current portfolio value is around US$8.5 billion, including residential developments, retail centers, hotels and commercial properties.

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