Gaw Capital sells $165m Silicon Valley properties

The Hong Kong-based firm made a 40 percent IRR on the sale of the Cupertino Gateway complex to Prudential Real Estate Investors.

Gaw Capital sold a Silicon Valley office complex for $165 million booking an internal rate of return of 40 percent, the company announced yesterday.

The Hong Kong-based firm bought Cupertino Gateway, a three-building complex, in September 2013 for Korean investors and leased it to electronics giant Apple.

The real estate investment management business of Prudential Financial, Prudential Real Estate Investors, acquired the 220,672 square foot buildings, which border other Apple-leased properties and is across the highway from the nearly-completed 2.8-million-square-foot Apple 2 campus.

The property was Gaw’s only asset in Silicon Valley. The firm also owns four properties in San Francisco and 13 total office buildings in the US.

“This exit builds on the success of our other separate account direct investments for our valued limited partners (LPs),” said Christina Gaw, Gaw’s managing principal and head of capital markets, in a statement.

Earlier this year, the firm sold Vintner’s Place, a London office building, on behalf of Korean institutional investors earning a 17.7 percent IRR. Gaw worked with Los Angeles-based Downtown Properties for this and other non-Asian investments.

The firm also established Gaw Capital Partners USA back in 2013 to manage US real estate funds and has so far raised a value-added fund, hitting a $140 million first close in July 2014.