Connecticut-based Westport Capital Partners and Hong Kong developer Tenacity Real Estate Group sold off a Macau, China office and retail building to an undisclosed buyer in a $125 million deal. The two partnered to acquire the property in 2006 and pumped $10 million in upkeep into it over the five-year hold. Specifics of the transaction were not revealed.
PRESS RELEASE:
Westport, CT, May 24, 2011 – Westport Capital Partners LLC (“Westport”), the real estate investment firm, today announced that affiliates of Westport and Tenacity Real Estate Group, a Hong Kong based developer, completed the sale of an office and retail building in Macau, China to an undisclosed buyer for HK$970 Million (approximately $125MM). The building, known as 39 Macau, is a 25-story, 317,000 sq. ft. tower that includes a four-story retail area and a 95-car parking facility. The building is located on Avenida Almeida Ribeiro in Macau, China, in the heart of Macau’s central business district.
The investment, from an affiliate of Westport Real Estate Fund I, is one of the first made by Westport. Westport and Tenacity acquired the property in the third quarter of 2006, when the building was only 34% leased to local Macanese trading companies. During their period of ownership, Westport and Tenacity completed an HK$80 million (US$10 million) renovation to upgrade the building’s office space to Class A international standards and to improve the amount and quality of retail space in the building. The renovation included the installation of a new curtain wall system, the modernization of building systems and the relocation of elevators and escalators throughout the building to improve circulation, access, and leasable area as well as visibility from the high traffic Avenue that fronts the building.
Westport Managing Principal Russel S. 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. 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.”
Today, 39 Macau stands out as an iconic structure in the Macau Central Business District. Despite the impact of the global credit crisis on Macau’s economy, the partnership was able to lease the building up to 87%, including achieving 100% occupancy in the retail space during their ownership. Building tenants now include China Construction Bank, Regus Business Centers, Philippine Airlines and Opa International Limited.
About Westport Capital
Westport Capital Partners LLC provides domestic and international investment opportunities to institutional and private clients. Through its various funds, the firm invests in a wide variety of distressed and opportunistic real estate. The firm focuses on distressed and opportunistic investments that have suffered from inadequate capitalizations, prior mismanagement and poor leasing. Additionally Westport focuses on the banking sector as a way to acquire and invest in real estate. The firm is headquartered in Westport, CT, with additional offices in Los Angeles, CA.
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