LONDON, Sept. 29, 2014 /PRNewswire/ -- BlackRock has completed the sale of Exchange Tower to a group of Asian investors led by GAW Capital Partners for £191million, equating to £395 per square foot.
Acquired by BlackRock Europe Property Fund III in 2010, Exchange Tower comprises 490,000 square feet of office accommodation over 16 floors. BlackRock undertook a comprehensive refurbishment of common parts and completed a turnkey refurbishment on behalf of the anchor tenant, which now occupies over half of the building. As a result occupancy has improved to 98% from 73% at acquisition. The transaction was structured as a forward sale to Gaw Capital and was agreed in April this year, in advance of completion of the works.
Commenting on the sale, Chris McCormack, Director at BlackRock Real Estate in the UK, said: "The spread between prime and non-prime real estate across London continues to provide opportunities to generate returns for institutional investors. We are pleased to have delivered on our original business plan and achieved a significant total return during the four-year investment hold period."
"By upgrading the facilities to give the space an ultra-modern look and feel, we have been able to attract a number of high profile tenants, as well as securing interest from long-term capital buyers such as Gaw Capital."
BlackRock Real Estate is the dedicated real estate investment group within BlackRock and invests in strategies across the risk and return spectrum, providing access to all major property types. The business manages over $24 billion of private and public real estate equity and debt on behalf of investors worldwide in 17 offices across 11 countries in Asia-Pacific, Europe and the US. Investment structures include commingled funds, co-investments, joint ventures and customised separate accounts.
Gaw Capital Partners acts as the advisor and co-investor in this deal for Korean Teachers' Credit Union and a pool of other Asian investors. It is the fifth acquisition in London led by Gaw Capital Partners on behalf of its Asian clients and is its ninth separate account direct investment since 2010. Other notable transactions in London include Vintners' Place in London in 2012, the Lloyd's Building in London in 2013 and Waterside House in Paddington London in 2013.
Goodwin Gaw, Managing Principal and Chairman of Gaw Capital Partners, said: "As an active player in the real estate market in greater China and Asia Pacific, Gaw Capital Partners is seeing more opportunities to assist Asian Investors going overseas. London is one of the key global gateway cities with high liquidity. The combination of attractive yield, trophy quality asset, and attractive long term debt, makes London a particularly compelling market for core real estate investments."
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For more information please contact:
Timi Oni
+44 (0) 20 7743 1592
timi.oni@blackrock.com
Jim Cheston, FTI Consulting
+44 (0) 203 727 1620
Jim.Cheston@fticonsulting.com
Sylvia Lee, Gaw Capital Partners
Sylvialee@gawcapital.com
Adam J. Steinberg, Weber Shandwick
ASteinberg@webershandwick.com
About Gaw Capital
Gaw Capital Partners is a uniquely positioned private equity fund management company that focuses in real estate markets in greater China and other high barrier-to-entry markets globally.
Specialising in adding strategic value to under-utilised real estate through redesign and repositioning, the firm's investments span the entire spectrum of real estate sectors, including residential development, commercial offices, retail malls, serviced apartments, and hotels.
Gaw Capital Partners runs an integrated business model with its own in-house asset management operating platforms in retail, hospitality and property development, and affiliates with Downtown Properties to bring in asset management capacity in the US.
Gaw Capital Partners currently manages four real estate funds targeting the Greater China and Asia Pacific region, whileGaw Capital Partners USA is providing services for separate account direct investment and fund management in the US and UK markets.Gaw Capital Partners has raised equity in excess of USD$4.0 billion since 2005 and currently commands assets of USD$ 7.9 billion under management as of second quarter of 2014.
Gaw Capital Partners was named "Asia Firm of the Year" and Goodwin Gaw was named "Asia Industry Figure of the Year" by 2013 Global PERE Awards. The Company also ranked #37 on PERE's 2014 ranking of the 50 largest private equity real estate firms in the world. Gateway Real Estate Fund IV received the "Best Launch: Real Estate (Private)" recognition in the 2014 AsianInvestor Investment Performance Awards. Gaw Capital was voted by industrial peers as "Best PERE Manager" and Goodwin Gaw "Industry Personality of the Year" at REIW Asia 2014.
About BlackRock
BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At June 30, 2014, BlackRock's AUM was $4.594 trillion. BlackRock helps clients meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. Headquartered in New York City, as of June 30, 2014, the firm had approximately 11,600 employees in more than 30 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company's website at www.blackrock.com.
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