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Phoenix in $240m Hong Kong sale – Exclusive

The firm has sold Kwun Tong View, a 25-story office property office to Hong Kong-listed ARA Prosperity Real Estate Investment Trust.

Phoenix Property Investors has sold Kwun Tong View, a 25-story office property situated in the business district of Kowloon, Hong Kong for around HK$1.875 billion ($240 million; €215 million).

The Hong Kong-based private equity real estate firm founded in 2002 by Samuel Chu and Benjamin Lee sold the asset to ARA Prosperity Real Estate Investment Trust, a Hong Kong listed REIT.

Phoenix acquired the building in November 2014 using capital from its fifth opportunity fund, Phoenix Asia Real Estate Investments V. The firm raised $750 million for the fund, comfortably more than its original $600 million target and the highest amount it has raised since its inception. The fund’s predecessor closed in July 2010 at $460 million.

Under Phoenix’s ownership a number of asset improvement works were undertaken which resulted in an increase in the overall rents by 55 percent through renewals and new lettings, the firm said.

The exit, which is subject to certain closing conditions including ARA’s unit holders’ approval, will be the third disposition Phoenix has made from Fund V and the expected closing date of the sale is on or about October 26, 2016.

Phoenix focuses on real estate opportunities in first-tier Pan-Asian markets including Greater China, Japan, Korea as well as other Southeast Asian countries. Since its inception, Phoenix has raised approximately $2.5 billion of equity for real estate investment and development opportunities in the residential, retail, office and commercial sectors.