Sino-Ocean Makes New Building Purchase For $42 Million
New reports reveal that Sino-Ocean Land has made a new office building purchase for a whopping $42 million. The company has made a purchase from Gaw Affiliate and sources reveal that the building is located in San Francisco.
Sino-Ocean, which is based in Beijing, has become an emerging Chinese developer to buy property on the Bay Area real estate market. The state owned giant has now revealed that it has purchased a new office building located in San Francisco from Goodwin Gaw’s Downtown Properties.
After its purchase, Sino-Ocean’s new building competes with other big names in the area and contends with many other buildings in the fast developing commercial district of Mission Street. Sources have revealed that Sino Ocean, which is owned by COFCO, has purchased the 65,000 square foot building in SOMA area in San Francisco. However, for Sino-Ocean, this is its first deal in the Bay Area. It is also the first publically announced direct investment by the company in American real estate market. The company has previously made purchases in Sydney.
Sino-Ocean, which is a Hong Kong listed company, is paying a sum of $640 per square foot for the building located at 1161 Mission Street. Back in 2011, Downtown Properties had acquired the 4 storey building for an amount of $19.3 million.
The new property makes up a significant part of the California asset extensive portfolio, which is owned by Downtown Properties. The company is managed by Goodwin Gaw, who is also the chairman and founder of Gaw Capital Partners, located in Hong Kong.
Downtown Properties also holds and controls 300 Montgomery along with 550 Montgomery office buildings in San Francisco. It also owns properties in Bradbury Building located in LA.
Sino-Ocean, after its purchase, will have a lot of familiar buildings in its surroundings. The area in which it has made its purchase is well renowned amongst big tech firms in the United States. There are many firms who have already made their purchases in the same area including Twitter and Salesforce, to name a few. The 1161 Mission is located strategically, as it is less than 2 miles away from Lumina Condo Tower.
This is the place where China Vanke made a huge investment in the US real estate back in 2013. China has shown a lot of interest in buying buildings in the San Francisco area. Back in 2015, China Oceanwide, which is another developer based in Beijing, spent a whopping $296 million to purchase First and Mission, a huge, 2 million sq. ft. mixed used project which is just close by to the new purchase of Sino-Ocean.
Things seem to be heading in the right direction for Sino-Ocean, as it will now sit in the hub of United States and conduct its operations from there. Things seem promising and with the incredible location of the new building, it is also being said that the company will soon recover its massive investment as well.