China Orient, Great Eagle To Launch $1B US Property Fund

Hong Kong-based property firm Great Eagle Holdings Limited says it has signed an agreement with China Orient Asset Management Corporation to establish a close-end fund targeting at investment in office properties in the U.S., according to a company announcement.

China Orient Asset Management, through its wholly owned subsidiary China Orient Asset Management (International) Holding Limited (COAMCI), will contribute US$150 million capital at the time of the first closing.

Great Eagle will inject three of its office properties in San Francisco as its committed capital.

China Orient will hold a 20% interest in the U.S. office property fund, while Great Eagle will own an 80% interest.

Both parties will seek to raise capital from other investors to bring the total capital of the fund up to US$1 billion.

The three properties to be injected into the U.S. office property fund by Great Eagle are 353 Sacramento Street, 123 Mission Street and 500 Ygnacio in San Francisco.

The first two properties are located in the heart of the financial district in downtown San Francisco with 725,000 square feet of gross floor area. The third property has a gross floor area of 110,000 square feet.

The three U.S. properties are estimated to have a total value of approximately US$230 million.

The strategy of the fund is to acquire office properties in selected U.S. cities with a lack of new supply.

China Orient is one of the four state-owned assets management companies, or bad debt companies, established by China’s State Council in 1999.

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