Asian Investors look to Fund Platform Acquisitions to Deploy Capital in U.S. Real Estate
CBRE Capital Advisors was the exclusive financial advisor to Hong Kong-listed Gemini Investments–the investment arm of Sino-Ocean Land, also listed on the Hong Kong Stock Exchange and one of the largest real estate companies in China–in its acquisition of Rosemont Realty LLC, a leading commercial property acquisition and asset management firm headquartered in Santa Fe, New Mexico, U.S.
The resulting joint venture, Gemini-Rosemont Realty LLC (“Gemini-Rosemont”), will continue to own and manage Class A institutional-quality commercial office properties across the United States. A substantial portion of Rosemont's existing portfolio, comprised of 135 buildings and representing approximately 15.9 million square feet of commercial real estate across 22 states, will be transferred to Gemini Rosemont. The existing Rosemont team will remain in place to run the operations of the joint venture.
CBRE Capital Advisors acted as exclusive financial advisor to Gemini Investments, with teams in Asia and the US working jointly on the transaction. Canon Yau and Sharon Law, both Directors for CBRE Capital Advisors Asia Pacific based in CBRE’s Hong Kong office, advised on the transaction whilst working closely with James Scott and Damian Taylor in New York.
Nick Crockett, Executive Director, Capital Advisors Asia Pacific commented, “Sino-Ocean Land and Gemini Investments together represent one of Asia Pacific's leading commercial real estate platforms, possessing extensive capital and strategic long-term vision. We are delighted to have facilitated the strategic partnership between Gemini Investments and Rosemont Realty, as this venture presented the ideal opportunity for our client to leverage the extensive market coverage and domestic expertise of a fully integrated US market leader, driving the company’s expansion into the US property market as part of its wider global capital deployment.”
James Scott, Executive Managing Director & Managing Principal, CBRE Capital Advisors, commented, “this acquisition of a leading US real estate fund platform is indicative of Asian investors looking for high quality partnerships in order to effectively deploy capital into US commercial real estate. Investment in the US real estate market continues to be very attractive to these investors due to strong underlying fundamentals, healthy macro-economic dynamics and a large, liquid, stable market.”
In addition to Rosemont’s existing commercial assets, the team performed a thorough evaluation of Rosemont’s RREAF I portfolio and Legacy portfolio of office, retail and multifamily assets across 22 states in the US. This reflects CBRE’s recently published report, The Expanding Role of Chinese Capital in Global Real Estate Market, which highlights the trend of Asian capital increasingly targeting investments in a wider range of geographies across a greater variety of asset types, and how opportunities can be best captured by linking up with local partners and working with global retained advisors.
About CBRE Capital Advisors
CBRE Capital Advisors is the investment banking arm of CBRE Group and is licensed by respective financial regulators in all key markets. With a global platform of over 100 real estate finance professionals across offices in London, Amsterdam, New York, San Francisco, Singapore, Hong Kong, Seoul, Tokyo and Sydney, CBRE Capital Advisors provides independent M&A advisory, equity placement and secondary trading of LP interests, working in partnership with the CBRE platform. CBRE Capital Advisors is a FINRA-registered broker-dealer in New York and a corporation licensed by the Securities and Futures Commission of Hong Kong. Please visit our website at www.cbrecap.com
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com