[New York, NY / Bad Homburg, 9 April 2019]. HQ Capital, a leading independent manager of alternative investments, announces $840 million of real estate activity in 2018. Over the past year, the firm invested in eight multifamily investments throughout the U.S. in Arizona, California, Colorado, Georgia, Massachusetts, Tennessee and Texas, representing nearly 1,800 units with total project costs of $410 million.

“We experienced strong rental apartment demand, driven by healthy job gains last year,” said Justin Sorem, Vice President of Real Estate Asset Management at HQ Capital. “In the coming year, we expect to see this absorption continue, which will position our projects for further successful sales to apartment buyers.”

Beyond its investments, HQ Capital sold 11 residential and commercial properties valued at approximately $430 million and representing more than 2,300 apartment units and 360,000 square feet of commercial space throughout the U.S. The properties, which were sold to various institutional and private investors, were located in Growth markets primarily in the Southern and Western regions of the U.S.

“In 2018, we continued to successfully invest in and sell U.S. multifamily properties,” said Jeremy Katz, Co-Head of Real Estate at HQ Capital. “We are benefiting from a highly active sales market in which institutional investors seeking nonvolatile current returns are attracted to the core product we are delivering.”

In addition to its investment and sales activity, HQ Capital added a 68,000-square foot office building in Washington, D.C. to its third-party asset management portfolio.

The company expects to continue its current level of business activity in 2019.

April 11, 2019, Hong Kong – Hengli Investments Holding (Group) Ltd. (“Hengli Group”) and real estate private equity firm Gaw Capital Partners, through a fund under its management, today closed the acquisition of portions of Cityplaza Three (including 10 high zone office floors and commercial areas) and Cityplaza Four from Swire Properties. The partners closed the acquisition of the two office towers for HK$15 billion, amounting to an average price of around HK$19,350 per sq. ft.

Located in the growing business center of Taikoo Shing in Hong Kong’s Eastern District, the two 22-storey Grade-A office towers have a combined GFA of around 775,000 sq. ft. and enjoy views over the Victoria Harbor with direct walkways connecting the buildings to Tai Koo MTR station and Cityplaza shopping mall. With the recent opening of the Central-Wan Chai Bypass, the towers also have quick and convenient access to the Central business district.

Chang Wei Chen, Chairman of Hengli Investments Holding (Group) Ltd., said, “Record-high rents in traditional business areas have created demand for more cost-effective and spacious Grade-A office buildings in emerging commercial districts, creating huge potential for areas like Taikoo Shing. Working closely with Gaw Capital’s team, we look forward to adding strategic value to Cityplaza Three and Four through property enhancement work, leveraging the towers’ attractive location in the fast-growing Eastern District to capture this new wave of tenants. This investment is one of the long-holding properties of our Group in Hong Kong, which provides continuous stable rental returns.”

Mr. Chen, possessing over 30 years of experience in investment, industrial and commercial sectors and real estate development, is the key decision maker on strategic development for Hengli Group. Mr. Chen is currently the second-largest shareholder of Wanda Hotel. Wanda Hotel is principally engaged in property development, property letting, property management and investment holding activities.

Kenneth Gaw, President and Managing Principal of Gaw Capital Partners, said, “We are delighted to be partnering with Hengli Group to purchase portions of Cityplaza Three (including 10 high zone office floors and commercial areas) and Cityplaza Four and to reposition them into attractive office space that appeals to the new wave of businesses moving into Taikoo district. Riding on the properties’ promising location, we will deploy a creative approach to asset management that strengthens the buildings’ pull factors and makes them a key destination for firms that are looking to relocate to the Eastern District.”

Gaw Capital has over 13 years of experience investing in and/or turning around commercial properties in Greater China, including Hong Kong. The firm successfully transformed and repositioned properties such as 133 Wai Yip Street in Hong Kong, a former 12-storey industrial building turned creative office space; and Sky Bridge HQ, a mixed-use project located in the heart of Linkong Economic Park in Shanghai. In recent years, the firm also purchased 29 local Hong Kong shopping malls from Link REIT, which it intends to reposition and revitalize into attractive hubs of community life.

As previously announced, Ratos has been in negotiations with the National Property Board of Sweden regarding a possible transfer of ownership of its Stockholm Lejonet 4 property to the Swedish state. Following these negotiations, an agreement has now been reached for the Swedish state to purchase the property. The agreement is conditional on the National Property Board receiving authorisation to complete the agreement from the Swedish government, upon approval from parliament, by 19 July 2019 at the latest.

Ratos will receive 550 MSEK in conjunction with the sale. The consolidated book value for the property at 31 December 2018 was 56 MSEK.

“The Stockholm Lejonet 4 property was acquired by Söderberg & Haak in 1938 and by Ratos AB (publ) in 1980. The security requirements in the area surrounding the property have gradually increased, resulting in a number of restrictions and obstacles in terms of how the property can be used, including entry and exit restrictions. Allowing the National Property Board to take over the property is therefore a logical alternative”, says Jonas Wiström, CEO of Ratos.

Ratos has the option to remain in the property until the end of 2021.

For further information, please contact:
Jonas Wiström, CEO, Ratos, +46 8 700 17 00
Helene Gustafsson, Head of IR and Press, Ratos, +46 70 868 40 50

About Ratos:
Ratos owns and develops unlisted medium-sized companies in the Nordic countries. Our goal as an active owner is to contribute to long-term and sustainable operational development in the companies we invest in and to make value-generating transactions. Ratos’s portfolio consists of 12 medium-sized Nordic companies and the largest segments in terms of sales are Construction, Industrials and Consumer goods/Commerce. Ratos is listed on Nasdaq Stockholm and has approximately 12,300 employees.

Ratos AB (publ) owns and has its headquarters in the Stockholm Lejonet 4 property located between the Rosenbad building (the prime minister’s office) and Sagerska Palatset (the prime minister’s official residence) on Drottninggatan in Stockholm. Security requirements in the area have increased, and are expected to continue to increase, resulting in a number of restrictions and obstacles for the operations at Ratos AB’s (publ) headquarters on Drottninggatan, including entry and exit restrictions. Ratos is therefore currently in negotiations with the National Property Board of Sweden regarding a possible transfer of ownership to the Swedish state.

The Stockholm Lejonet 4 property was acquired by Söderberg & Haak in 1938 and by Ratos AB (publ) in 1980 and had a book value in the company’s balance sheet of SEK 56m as of 31 December 2018.

For further information, please contact:
Jonas Wiström, CEO, Ratos, +46 8 700 17 00
Helene Gustafsson, Head of IR and Press Ratos, +46 70 868 40 50

About Ratos:
Ratos owns and develops unlisted medium-sized companies in the Nordic countries. Our goal as an active owner is to contribute to long-term and sustainable operational development in the companies we invest in and to make value-generating transactions. Ratos’s portfolio consists of 12 medium-sized Nordic companies and the largest segments in terms of sales are Construction, Industrials and Consumer goods/Commerce. Ratos is listed on Nasdaq Stockholm and has approximately 12,300 employees.