Swire Properties, CMBC sell Hong Kong tower for US$605m

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Hong Kong-listed Swire Properties and China Motor Bus Company (CMBC) have agreed to sell a 26-storey office in Hong Kong’s North Point area for HK$4.75bn (US$605.2m).

The two vendors separately announced the disposal of their 50% stakes in the 625 King’s Road property, with Swire Properties noting that it would record a HK$965m statutory gain on the sale.

CMBC said they initially received an unsolicited offer from a special purpose vehicle owned Gateway Real Estate Fund VI, a fund managed by Hong Kong-based Gaw Capital, Mingtiandi reported.

The 28,000 sq.m. grade-A tower is served by the North Point MTR station and is a short distance from the Taikoo Place business community.

The office building, which oversees Victoria Harbour, is occupied by a mix of financial, investment and professional services corporations.

The deal is expected to close in July this year. The transaction follows Gaw Capital’s HK$12bn acquisition of a portfolio 12 shopping centres in Hong Kong from Link REIT in December.

Gaw Capital, which has US$18bn of assets under management, has raised five comingled funds targeting the Greater China and APAC regions since it was established in 2005.

The firm also manages value-add/opportunistic funds in Vietnam and the US, as well as a pan-Asia hospitality fund and a European Hospitality Fund.