Gaw Capital, partners strike Shanghai office deal

Real estate private equity firm Gaw Capital Partners and a consortium of investors including Canadian QuadReal Property Group have bought the Ocean Towers office building in central Shanghai to tap into strong leasing activity for premium workspace in the city.

The 50,219 sq.m. property is in People’s Square in the heart of the Huangpu district and is next to Nanjing East Road, a popular pedestrian street and traditional commercial centre, Gaw Capital said in an announcement.

The 25-storey asset, located at 550 East Yan’An Road, is near Nanjing West Road CBD and the Bund, as well as People’s Square and Dashijie metro stations.

“Shanghai’s economic development has surpassed all other cities in China with 6.9% growth in GDP,” said Humbert Pang, managing principal and head of China for Gaw Capital Partners.

“Shanghai remains China’s top gateway city for both multinational corporations and domestic companies, with Shanghai’s CBD Grade A offices continuing to demonstrate a strong leasing momentum.”

The deal sees Gaw Capital return to the city, where it has previously invested in assets like the 22-storey Cross Tower office building, the 39-storey Ciro’s Plaza mixed-use asset and the 40,000 sq.m. Plaza 353 mall.

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

Headquartered in Vancouver, QuadReal has C$24.5bn of AUM and is owned by British Columbia Investment Management Corporation.

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