Angelo Gordon snaps up HK$818m assets – exclusive

The New York-based alternative investment firm Angelo, Gordon & Co has invested outside of Hong Kong’s Central district as demand for properties outside the island-city’s prime business district rises.  

Angelo, Gordon & Co has acquired two properties in Hong Kong for a total of HK$818 million (€97.34 million; $105.4 million).

PERE can reveal that the New York-based alternative investment firm has invested HK$600 million for an office building in the Sheung Wan district located in the fringes of Central, and HK$218 million for a retail property in Hong Kong Island West. Both of these deals were done in December last year.

Office property 9 Des Voeux Road West in Sheung Wan is a 9-floor building with a gross floor area of 64,420 square feet. 554-560 Queen’s Road West in the Western District is a three-level retail podium, spread over 20,237 square feet, with a potential scope for repositioning.

The properties are understood to have been acquired via Angelo Gordon’s third pan-Asia opportunistic private equity real estate fund. AG Asia Realty Fund III was launched in 2014 with a target of around $800 million, and is currently in fundraising mode. According to a March filling with the US securities regulator – the most recent public information available for the fund – the firm had registered $77 million in commitments via the fund.

Angelo Gordon has been actively buying properties across sectors in the island-city. In July last year, the firm acquired a 209,610 square feet industrial building in the Kwai Chung business district with plans to convert it into an office-cum-retail complex.

A supply shortage in Central, Hong Kong’s prime business district, where vacancy levels were estimated to be around 2.5 percent according to estimates by JLL and rental growth of around 10 to 15 percent in 2015, has led to rising demand for properties in the fringes of Central and other decentralized areas.

Angelo Gordon declined to comment on the story.