Partners Group has sold a converted office building in Hong Kong, generating 45% returns for its investors.
The investment manager said it sold its investment in the Kowloon East asset two years after purchase. The firm said the sale comes 18 months ahead of schedule.
The 13-storey building was redeveloped by the firm from its former use as an industrial property.
“The building in Kowloon East was a prime example of our investment strategy to fix underutilised properties in markets with strengthening fundamentals,” said Bastian Wolff, managing director and head of private real estate in Asia.
“Due to the strong demand for office space by owner occupiers, we were able to achieve an exit ahead of plan and before the conversion of the building had been fully completed.”
The 206,255 sqft property was bought at a time when the Kowloon East area was emerging as an office sub-market, with the Hong Kong government launching an initiative to redevelop the area.
Rental rates per square foot in Kowloon East are much lower than those in Hong Kong Island, Partners said, although more than three times higher than equivalent rental rates for warehouses or industrial buildings.