Hong Kong-headquartered real estate private equity firm Gaw Capital Partners announced that it has raised £28.5 million ($35 million) in mezzanine financing from a consortium led by Samsung Securities and KB Asset Management.
The five-year mezzanine facility, which has a loan-to-value (LTV) ratio of just under 71 per cent, will be used to refinance Gaw Capital’s preferred equity on its landmark office building in Docklands, London. The property – Harbour Exchange 1, 2, 4, and 5 – was acquired by the PE firm on behalf of Asian investors in September 2014.
Situated in the Docklands, the property comprises 60,000 square feet of Grade A office space over four buildings between 3 and 16 floors, 500 car parking spaces, and nine-acre freehold. Its key tenants include Financial Ombudsman Service, CLS, Booking.com, and QBE Insurance.
Gaw Capital said the mezzanine facility highlights the growing relationship between the PE firm and Samsung Securities, which dates back to another deal of acquiring Aoyama Building, a Grade A office building located in the center of Tokyo, Japan in 2019.
The facility was raised amidst the coronavirus pandemic and the global financial turmoil, according to Christina Gaw, Managing Principal & Head of Capital Markets for Gaw Capital.
“This demonstrates that the market remains open for quality assets with the right fundamentals and strong cash flow,” she added.
Gaw Capital has an investment track record in the London market. Its portfolio in the country includes Lloyd’s Building, 123-151 Buckingham Palace Road, Milton Gate, and Tower Place.
“We are also excited to collaborate further with our Korean partners on future opportunities in the UK and beyond,” Gaw said.
Founded in 2005, Gaw Capital has raised five commingled funds with an investment focus on Greater China and the Asia Pacific. Commingled funds refer to a portfolio comprising assets from several accounts that are blended together.
The firm also manages value-add/opportunistic funds in Vietnam and the US, a pan-Asia hospitality fund, and a UK creative office vehicle.
In December, Gaw Capital made the final close of its sixth Greater China-Asia Pacific real estate fund, Gateway Real Estate Fund VI, at the hard cap of $2.2 billion, making it the firm’s largest vehicle to date.