Mapletree Investments and PAG to acquire Hong Kong’s Goldin Financial Global Centre for US$713 mil

Mapletree and PAG will finance the transaction through a combination of equity and debt capital.Mapletree and PAG have entered into an agreement to form a 50:50 joint venture to acquire Goldin Financial Global Centre (GFGC) for US$713 million. The 28-storey building is located in Kowloon East, Hong Kong, and has a total lettable area of 886,703 sq ft. Completed in 2016, it was the former headquarters of distressed investment holding company Goldin Financial Holdings.

The acquisition of GFGC offers “very good value at a significant discount to replacement cost”, as per J-P Toppino, president of PAG, who sees the ongoing post-Covid recovery in Hong Kong creating attractive opportunities for investors. Mapletree’s Wong Mun Hoong, Regional Chief Executive Officer (Australia & North Asia), noted that the transaction is a great opportunity to own a high-quality office building in Hong Kong.

He is confident of the office sector’s recovery in Hong Kong with the reopening of the China border and easing of travel restrictions.

Mapletree and PAG will finance the transaction through a combination of debt capital and equity. As the receivers of GFGC in 2020, Mapletree and PAG will acquire it for HK$5.6 billion or US$713 million ($948 million).

Given the attractive value and the shift of the Hong Senja Close EC Kong office sector, Mapletree and PAG’s joint venture to acquire GFGC is highly likely to be successful.