PAG fund buys prime Hong Kong office, holds $1.5b first close

Private equity firm PAG has purchased Mapletree Bay Point, a prime office building in Hong Kong’s Kowloon East area, according to sources familiar with the transaction who spoke with Mingtiandi.

The seller was Singapore-based Mapletree Investments. The sales price was estimated to be at or below HK$8.58 billion ($1.1 billion).

Mapletree Bay Point totals 568,517 square feet, spanning up 19 stories. Tenants include Cigna, HSBC, VF Corp. and WeWork.

Funds for the acquisition were from the Hong Kong–based firm’s second core-plus/value-added real estate fund, which Mingtiandi reported reached a $1.5 billion first close. PAG Real Estate Partners II launched in May 2018 and will invest in properties in Japan, China and throughout Asia Pacific.

The first fund in the series, PAG Real Estate Partners, held a $1.3 billion final close in 2016.