Key Takeaways
- • Gaw Capital Partners is seeking to refinance a HKD14.4bn (about $1.8bn) loan secured against 16 shopping centres in Hong Kong, according to Bloomberg.
- • The Hong Kong-based private equity firm is in discussions over a potential three-year facility, with pricing and other terms not yet finalised.
- • The existing loan, arranged in 2024, carries an interest margin of 148 basis points over Hibor; United Overseas Bank, ANZ and Standard Chartered Bank (Hong Kong) acted as mandated lead arrangers, bookrunners and underwriters.
- • The proposed refinancing follows Gaw's completion of a HKD4.29bn loan against the Regent Hong Kong hotel in September, which drew lender commitments above the target.
- • Hong Kong retail remains uneven: department store sales fell 2.8% year-on-year in August while supermarket sales rose 1.5%.
Summary
Gaw Capital Partners is seeking to refinance a HKD14.4bn loan secured against 16 shopping centres in Hong Kong, while negotiating lower borrowing costs amid an uneven recovery in the city's retail property market, according to Bloomberg. The Hong Kong-based private equity firm is in discussions over a potential three-year facility, although pricing and other terms have yet to be finalised.
The existing loan, arranged in 2024, carries an interest margin of 148 basis points above the Hong Kong Interbank Offered Rate (Hibor). United Overseas Bank, ANZ and Standard Chartered Bank (Hong Kong) acted as mandated lead arrangers, bookrunners and underwriters. The portfolio comprises shopping centres across Kowloon and the New Territories, primarily located in densely populated residential districts near public transport links.
The proposed refinancing follows Gaw Capital's completion of a HKD4.29bn loan secured against the Regent Hong Kong hotel in September, which attracted lender commitments exceeding the target amount. Conditions for the retail sector remain challenging. Department store sales reportedly declined 2.8% year-on-year in August, while supermarket sales increased 1.5%, reflecting mixed consumer spending.
Borrowing costs have also risen. One-month Hibor reached 3.02% in late September before easing to 2.78% on the most recent Friday. Gaw previously faced refinancing difficulties involving commercial properties in Hong Kong and Shanghai, securing agreements last year as China's prolonged property downturn continued to weigh on valuations and financing conditions.
The existing loan, arranged in 2024, carries an interest margin of 148 basis points above the Hong Kong Interbank Offered Rate (Hibor). United Overseas Bank, ANZ and Standard Chartered Bank (Hong Kong) acted as mandated lead arrangers, bookrunners and underwriters. The portfolio comprises shopping centres across Kowloon and the New Territories, primarily located in densely populated residential districts near public transport links.
The proposed refinancing follows Gaw Capital's completion of a HKD4.29bn loan secured against the Regent Hong Kong hotel in September, which attracted lender commitments exceeding the target amount. Conditions for the retail sector remain challenging. Department store sales reportedly declined 2.8% year-on-year in August, while supermarket sales increased 1.5%, reflecting mixed consumer spending.
Borrowing costs have also risen. One-month Hibor reached 3.02% in late September before easing to 2.78% on the most recent Friday. Gaw previously faced refinancing difficulties involving commercial properties in Hong Kong and Shanghai, securing agreements last year as China's prolonged property downturn continued to weigh on valuations and financing conditions.
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