Westport Capital Partners and Hong Kong-based developer Tenacity Real Estate Group have sold a 317,000-square-foot building located in Macau's central business district. The partnership sold the newly-renovated office and retail property, known as 39 Macau, to an undisclosed buyer for HK$970 million (€88.74 million, $125 million).
“We had completed renovations, it was well leased and the price we were being offered was very attractive,” said Russel Bernard, managing principal of Westport, on why the partnership decided to sell the 25-story tower located on Avenida Almeida Ribeiro. Indeed, the partnership was able to lease up the building to 87 percent occupancy, including full occupancy for the four-story retail component, during its ownership.
“Together with our partners at Tenacity, we sought to add value by revitalizing an older building through a strategy of targeted investment and modernization, which has resulted in a favorable realization,” Bernard said. “We are pleased to have successfully turned around this property, making it one of Macau's premier addresses while creating value for our investors.”
The Westport, Connecticut-based real estate investment firm, on behalf of its Westport Real Estate Fund I, and Tenacity acquired the property in the third quarter of 2006, when the building was only 34 percent leased to local Macanese trading companies. The firms then spent HK$80 million on upgrades, including the modernization of building systems and the relocation of elevators and escalators throughout the building.