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Pamfleet sells Hong Kong office property

The Hong Kong and Singapore-focused private equity real estate firm has returned all the capital raised from its maiden fund via which the asset was acquired.

Hong Kong and Singapore-focused private equity real estate firm Pamfleet Group has sold an office building in Hong Kong for HK$560 million (€64 million; $72 million).

The Mark, a 20-storey office building located in the Kowloon East district in the island-city, was sold to a Hong Kong-listed manufacturing firm Sitoy Property Investment, according to a recent filing with the Hong Kong Stock Exchange. Sitoy Property Investment has said that it intends to use the property as its headquarters as well as lease part of the premises to tenants.

According to a news report in Mingtiandi, Pamfleet had acquired the property, a former industrial building, in January 2014 from a private investor for around HK$385 million.

The property was acquired via Pamfleet’s maiden value-add real estate vehicle, Pamfleet Real Estate Fund (PREF). PREF raised $209 million in equity in 2012 and is currently in the divestment phase. So far the firm has exited five of the seven investments made from the fund corpus. PERE understands that the firm had already returned the entire $209 million to the fund investors earlier this year, even before the sale of The Mark.

The firm’s biggest exit from PREF was last year when it sold an industrial building in Hong Kong to New World Development for around $200 million, generating an investment return of 45 percent. The exit was made in partnership with the Zug-based private markets investment manager Partners Group.

Currently the firm is deploying capital raised from its second value-add vehicle. Pamfleet closed PREF II on the fund’s hard cap target of $400 million in June last year.