Real estate investment manager Schroder Pamfleet today announced that the firm, through a fund under its management, entered into the Sale and Purchase Agreement as a co-investor alongside Gaw Capital Partners and other consortium partners for the purchase of CityPlaza One from Swire Pacific (0019.HK & 0087.HK) and Swire Properties (1972.HK). The acquisition price of the office tower is HK$9.845 billion, which translates to an average price of around HK$15,609 per sq. ft.
Situated in the decentralized office market of Taikoo Shing in Hong Kong East, the 21-storey Grade-A office tower, completed in 1997, comprises a total GFA of around 630,000 sq. ft, with higher floors enjoying sea views of Victoria Harbour. The property has a direct linkage to Tai Koo MTR station and is fully integrated with the CityPlaza shopping mall. Recent opening of the Central-Wan Chai Bypass has further enhanced the building’s accessibility and reduced travelling time to and from the Central business district. CityPlaza One is backed by a strong tenant profile including financial institutions, insurance companies and multinational corporations. The building has achieved Platinum rating under the Hong Kong Green Building Council’s BEAM certification.
Andrew Moore, Head of Schroder Pamfleet, said: “We are pleased to confirm Schroder Pamfleet’s involvement in this deal, which comes after a period of patience and discipline in our approach to the real estate market in Hong Kong. Following the many challenges that Hong Kong has faced, it is gratifying to be able to make this investment in which we have such a high conviction. There are many reasons to be optimistic about Hong Kong’s prospects, including the 60 or 70 IPOs in the pipeline and the real work that is being done on integration with the Greater Bay Area. The Hong Kong East core sub-market stands out in terms of its relatively low vacancy and limited upcoming new supply, and its diverse and loyal occupier base.”
Allan Lee, Head of Asia (ex-China), Real Estate of Schroder Pamfleet, said: “CityPlaza One is a well-located, well-managed property that represents an opportunity to participate in the long-term favourable economic outlook for Hong Kong. We worked well with Gaw Capital in the past and are pleased to work with them again.”
Goodwin Gaw, Chairman and Managing Principal of Gaw Capital Partners said: “At Gaw Capital, we continue to be confident about Hong Kong’s future, and we would like to thank our investors and partners for their support. Following the purchase of portions of CityPlaza Three and CityPlaza Four in 2018 and 625 King’s Road in 2019, we are delighted to have signed the sales & purchase agreement today for the purchase of CityPlaza One. We see it as a strong addition to our commercial portfolio in Hong Kong’s Island East District. The district has benefited from the many years of vibrant improvements made by Swire Properties as the major landlord. With the new addition of CityPlaza One to our Island East portfolio, we look forward to working together with our long-time partners Swire Properties to contribute to the continued evolution of the district as the alternative CBD of Hong Kong Island.”