Hong Kong-based real estate private equity firm Gaw Capital Partners announced yesterday that a fund under its management, along with consortium partners including Goldman Sachs, have won a bid to acquire a retail portfolio comprising 12 shopping centers in Hong Kong from Link Asset Management Limited at HK$12.01 billion (US$1.54 billion).
The deal was inked at an average price of around HK$7,839 (US$1,003) per square feet excluding parking.
The portfolio, covering a gross floor area (GFA) of 1.1 million square feet, is comprised of a number of properties located at Hong Kong Island, Kowloon and the New Territories. It comes with over 4,700 parking spaces, according to a statement issued by Gaw Capital Partners on December 12.
Shopping centers under the portfolio include Retail and Car Park within Ap Lei Chau Estate, Chun Shek Shopping Centre, Fortune Shopping Centre, King Lam Shopping Centre, Lei Tung Commercial Centre, Ming Tak Shopping Centre, Shan King Commercial Centre, Siu Hei Commercial Centre, Retail and Car Park within Tai Ping Estate, Wah Ming Shopping Centre, Wah Sum Shopping Centre, Wang Tau Hom (Wang Fai Centre).
The bid follows another one sealed by Gaw Capital Partners in November 2017, in which the company acquired a retail portfolio comprising 17 shopping centers in Hong Kong from Link Asset Management Limited at HK$23 billion (US$2.94 billion). The company’s consortium partners including Goldman Sachs also participated in the previous deal.
Gaw Capital Partners has worked with the community in the past one year. And the company has implemented a series of initiatives "to better make use of these malls for the community", said Kenneth Gaw, president and managing principal of Gaw Capital Partners.
"We will further leverage our experience to evolve these malls into refreshed and renewed centers of local life and collaborate with the local non-governmental organizations (NGOs) and existing tenants to build a better neighborhood for themselves," said Goodwin Gaw, chairman and managing principal of Gaw Capital Partners.
Gaw Capital Partners has raised equity of US$9.8 billion since its inception in 2005 and commands assets of US$18.3 billion under management as of the second quarter of 2018.
The company serves as a real estate investment firm specializing in making investments in real estates sector including offices, commercial properties, retail malls, serviced apartments, and residential and retail properties. The company typically invests in companies based in Asia and Asia Pacific with a focus on Greater China and China’s tier two and tier three cities.