Hong Kong-based real estate fund manager Gaw Capital has acquired a 13-storey office tower, Aoyama Building, in Tokyo from US investor GreenOak Real Estate, a spokesperson confirmed.
While Gaw Capital did not reveal the value of the deal, a Bloomberg news report pegged the transaction at about $800-850 million, and real estate portal Mingtiandi said the deal size was around 84 billion yen (approximately $750 million).
Gaw Capital, which manages real estate investment funds on behalf of some of the world’s largest institutions, has assets worth $18 billion under management across the Asia Pacific, the US and Europe.
Media reports said GreenOak, which bought Aoyama Building from Mitsubishi Jisho Investment in 2015, garnered a 3x return from the acquisition.
Gaw’s acquisition of an office tower not only helps strengthen its foothold in Tokyo but also paves the way for it to cash in on climbing rents in the country’s Minato ward. In 2017, the fund manager had acquired Minatomirai Centre Building in Yokohama.
The latest Tokyo office tower deal follows Gaw Capital’s recent purchases of office buildings in China, including MixC and Ocean Towers. The private equity firm has also acquired Robinson 77 in Singapore for S$710 million.
The acquisitions were made by its Gateway Fund VI, which was reported to reach its first close at $1.3 billion last October. The vehicle has a hard cap of $2 billion, according to a regulatory filing. The Gateway fund series focuses on investments in the Greater China region, with selected exposure in Japan, South Korea, Southeast Asia and Australia.