Gaw Capital, partners bag Hong Kong retail portfolio for HK$12bn

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Property private equity firm Gaw Capital Partners and a group of investors including Goldman Sachs have bought a portfolio of 12 shopping centres in Hong Kong from Link REIT for HK$12bn (US$1.53bn), representing a 32% premium to recent valuations.

The portfolio feature 1.1m sq.ft. of prime retail space, including the Chun Shek, King Lam and Fortune shopping centres, across Hong Kong Island, Kowloon and the New Territories, according to company announcements.

The deal reflects an average price of about HK$7,839 per sq.ft. and delivers Hong Kong-listed seller a net disposal gain of roughly HK$2.78bn.

“Followed by the bid we won together with our consortium partners to acquire 17 shopping malls in 2017, we will further leverage our experience to evolve these malls into refreshed and renewed centres of local life and collaborate with the local NGOs and existing tenants to build a better neighbourhood for themselves,” said Goodwin Gaw, chairman and managing principal at Gaw Capital Partners.

Link REIT plans to reinvest the sale proceeds into assets in Hong Kong and first-tier cities in mainland China, following on from its acquisition of the Beijing Jingtong Roosevelt Plaza last month.

HSBC and Cushman & Wakefield advised the seller on the deal.

The portfolio also includes Lei Tung Commercial Centre, Ming Tak Shopping Centre, Shan King Commercial Centre, Siu Hei Commercial Centre, Wah Ming Shopping Centre, Wah Sum Shopping Centre, Wang Fai Centre, and the retail and car parks within the Ap Lei Chau and Tai Ping estates.

Gaw Capital has US$18.3bn of assets under management.