Gaw Capital Partners has certainly been busy lately. In only less than a month and a half, they have sourced four new office buildings from China Resources, Mingtiandi reported. Details revealed that the price paid for these properties amounted up to RMB 2.8 billion ($390 million).
The private equity fund manager, a Hong Kong-based operation, bought the property off MixC complex on Wuzhong Road, located in Shanghai's Minhang district. Previously, China Resources Capital Management Ltd owned and operated the complex, which had now become part of Gaw Capital Partners' sizeable assets.
The purpose behind the acquisition was really simple; to further boost office values in Gubei. With the acquisition, Gaw Capital is now in a position to capitalize on the opportunity for growth brought about by the Shanghai Hongqiao Transportation Hub. It is eyeing a rate of RMB 6 to 7 per square meter per day for the Shanghai MixC buildings. The buildings are currently rated to have a rent of RMB 5.5 per square meter per day.
Gaw Capital aims to improve tenants' experience in the buildings en route to gaining justification for raising the rental per square feet. They are confident that their experience in handling properties like the Shanghai MixC will allow them to effectively manage their newly-acquired assets. Deal Street Asia bared Gaw Capital's plans, which is to renovate the buildings to have better 'quality and image' for the benefit of future tenants.
Only last April 2017, Gaw managed to acquire two towers out of the iconic SKY SOHO office blocks, in the same area. It was managed through a fund the company manages and under a consortium, one that included Allianz Real Estate. Gaw is using their experience managing the SKY SOHO towers as the basis for the MixC management.
The Shanghai properties are seen as a part of a 'mega-complex.' Included in the 530,000 square meter mixed-use complex are the MixC mall, the Artyzen Habitat hotel owned by Shun Tak Holdings, and the Shanghai Metro Museum. It is located 10 minutes away from the metro line Ziteng Lu station, giving Gaw Capital a ready income in foot traffic.
Gaw Capital Partners seems intent on investing in the mainland. Aside from the MixC and SKY SOHO properties, the Ocean Towers office and the Pacific Century Place have been acquired and dealt with, respectively, through funds controlled by Gateway Real Estate Fund VI and Lianjia Real Estate.
