Phoenix Property Investors fund sells two assets for $322m

In separate deals Phoenix Asia Real Estate Investments V, a fund managed by Phoenix Property Investors, has announced two dispositions, totaling $322 million in sales price.

Phoenix Asia Real Estate Investments V sold its sixth disposition 232 Wanchai Road, Hong Kong, to a subsidiary of Continental Holdings for $151.3 million.

The investment is a site assemblage project. It was completed the site assemblage through purchasing 49 individual units one-by-one and obtained vacant possession of the 999-year-lease-term site during the first quarter 2016.

Two sets of approved general building plans for commercial redevelopment were then obtained, with expected plot ratio to reach 15 times. Demolition works were completed in early July 2017.

The original investment program was to redevelop the site and exit upon building completion.

The fund also sold its investment in the top five connecting office floors of Enterprise Square III, a class-A commercial property situated in Kowloon Bay, Kowloon, together with 3 signages and 16 car parking spaces, for $171 million. The buyer was PRC developer.

The sale marks the fund's seventh disposition.

The properties are within a class-A office building adjacent to Mega Box located in the heart of CBD2 of Kowloon Bay. It has panoramic view of Victoria Harbour as well as the Kai Tak Development Area.

The fund originally purchased the properties from Esprit Holdings, a major fashion group, under a sale-and-leaseback structure where Esprit continues to lease three of the five floors.

The strategy was to target potential exit to corporate buyers looking for corporate headquarters space in Hong Kong class-A office sector with signage attached, especially PRC companies.

Phoenix Asia Real Estate Investments V closed in 2014 with $750 million.