Baar-Zug, 25 April 2013
Partners Group, the global private markets investment manager, has invested in a 13-storey warehouse building located conveniently close to transport links on Hung To Road in Hong Kong's Kowloon East, on behalf of its clients.
Kowloon East, formerly a largely industrial area, is emerging as an important office sub-market, with the Hong Kong government launching an initiative to transform it into a more affordable, alternate central business district to Hong Kong Island.
Aligned with the government's strategy, Partners Group's investment will support the conversion of the warehouse building into a class A office building with a modern design and BEAM Plus rating, a green building label recognized by the Hong Kong Green Building Council. After conversion, the office building will be suitable for large occupiers from a range of industries including financial services and manufacturing, which are seeking premium office space at more affordable rents than those offered in Hong Kong Island's Central district.
Bastian Wolff, a senior investment manager at Partners Group, comments: “We are excited to invest in this property for our clients. In line with our strategy to underweight core in this current environment and target value-added opportunities, an under-utilized property such as this offers potential for value creation through active asset management. Together with Pamfleet, our local operator, we aim to reposition the property into a branded commercial building with sustainable features to capitalize on the trend for businesses to locate their middle- and back-offices to this more affordable area in Hong Kong.“