A joint-venture investment fund managed by Morgan Stanley has sold Vicwood Plaza in Sheung Wan for about $2.6 billion - more than three times its investment of $842.8 million three years ago.
Macquarie Global Property Advisors (MGPA), a private equity property fund which yesterday announced it had bought Vicwood Plaza from Morgan Stanley, declined to disclose the transaction price or rental yield.
However, market sources said MGPA bought the building for about $2.6 billion or $6,566 per square foot.
Morgan Stanley and Pamfleet (HK), its acquisition partner, bought Vicwood Plaza for $842.8 million, or $2,128 per square foot, during the 2003 Sars crisis.
At the time, the purchase was credited with sparking the revival of the office market.
The joint venture has been active in the market. It bought 139 Queen's Road, Central for $655 million from DBS Bank this month as part of a long-term investment.
CB Richard Ellis office services director Alan Lok said Vicwood Plaza rents had risen 47 per cent to about $25 per square foot since Morgan Stanley took over.