Alliance with property fund trumps seven rivals with highest bid of $2.1b A joint venture led by Morgan Stanley Real Estate Fund has won the tender for the 44-year-old Hang Seng Building in Central with the highest bid of $2.1 billion, according to sources close to the deal. The investment fund, in a joint venture with pan-Asian real estate fund Pamfleet (HK), beat seven rivals to win the 23-storey office block in the second-biggest transaction in Central so far this year. A spokeswoman at Morgan Stanley said she was not aware the joint venture had been awarded the tender. Pamfleet managing director David Holdsworth yesterday confirmed they had offered more than $2 billion for the property but he was also not aware they had won the tender. 'The rental yield from the building will be low at first because part of the office space will be sold as vacant possession,' Mr Holdsworth said. 'However, we will refurbish the building. The concept will be similar to Vicwood Plaza in Sheung Wan.' The Lo Wah group, one of the bidders, said they had been informed yesterday that their offer was lower than the other bids. The purchase marks the investment bank's latest acquisition on the Hong Kong property market. Earlier this month, Morgan Stanley Real Estate Fund acquired a majority stake in boutique service apartment operator Shama. It came shortly after the fund, also in a venture with Pamfleet, bought 139 Queen's Road Central for $655 million from DBS Bank and acquired a majority stake in Shama from Macquarie. The group bought 139 Queen's Road Central, near Sheung Wan, for $7,221 per square foot. The Hang Seng Building, meanwhile, in a prime location, sold for more than $8,100 per square foot. The tender for Hang Seng Building closed on Wednesday with eight groups including Sino Land, Sun Hung Kai Properties, Lo Wah and other local investors lining up for the Hang Seng Bank's former headquarters in Des Voeux Road. The building has a site area of about 15,300 square feet and gross floor area of 260,000 sq ft. About 40 per cent of the space is occupied by owners who would be relocated to allow for vacant possession.