An investor consortium led by GAW Capital Partners has completed the purchase of the Exchange Tower at London's Docklands from Blackrock for £191 mln (€245 mln), reflecting a net initial yield of 7%.

An investor consortium led by GAW Capital Partners has completed the purchase of the Exchange Tower at London's Docklands from Blackrock for £191 mln (€245 mln), reflecting a net initial yield of 7%.

Gaw Capital Partners acted as the advisor and co-investor in this deal for Korean Teachers' Credit Union and a pool of other Asian investors. The deal price equates to £395 per square foot.

Acquired by BlackRock Europe Property Fund III for £135 mln in 2010, Exchange Tower comprises 490,000 sq ft (45,500 m2) of office accommodation over 16 floors. BlackRock undertook a comprehensive refurbishment on behalf of the anchor tenant, which now occupies over half of the building.

As a result occupancy has improved to 98% from 73% at acquisition. The transaction was structured as a forward sale to Gaw Capital and was first agreed in April this year, in advance of completion of the works.

Commenting on the sale, Chris McCormack, director at BlackRock Real Estate in the UK, said: 'The spread between prime and non-prime real estate across London continues to provide opportunities to generate returns for institutional investors. We are pleased to have delivered on our original business plan and achieved a significant total return during the four-year investment hold period.'

BlackRock Real Estate is the dedicated real estate investment group within BlackRock and invests in strategies across the risk and return spectrum. The business manages over $24 bn of private and public real estate equity and debt on behalf of investors Worldwide.

It is the fifth acquisition in London led by Gaw Capital Partners on behalf of its Asian clients and is its ninth separate account direct investment since 2010. Other notable transactions in London include Vintners' Place in London in 2012, the Lloyd's Building in London in 2013 and Waterside House in Paddington London in 2013.

Goodwin Gaw, managing principal and chairman of Gaw Capital Partners, said: 'As an active player in the real estate market in greater China and Asia Pacific, Gaw Capital Partners is seeing more opportunities to assist Asian Investors going overseas. London is one of the key global gateway cities with high liquidity. The combination of attractive yield, trophy quality asset, and attractive long term debt, makes London a particularly compelling market for core real estate investments.'

Gaw Capital Partners is a Hong Kong and Shanghai-based private equity fund management company that focuses in real estate markets in greater China and other high barrier-to-entry markets globally. Gaw currently manages four real estate funds targeting the Greater China and Asia Pacific region.