HONG KONG-A subsidiary of Australian fund Macquarie has paid an estimated HK$2.6 billion ($300 million) for Vicwood Plaza. Macquarie Global Property Advisors (MGPA) says it bought the 38-story Central commercial-retail complex as a long-term investment. Neither MGPA or the seller, Morgan Stanley, were prepared to disclose the price but industry insiders have valued the 400,000-sf tower at about HK$2.6 billion ($300 million). The sum is three times the HK$842.8-million ($108.6-million) price the US investment bank and its joint venture partner, Pamfleet Asset Management, paid for the property almost three years ago. "This is an exciting acquisition for the fund with the long-term growth opportunities in the Hong Kong property market being a driving force behind our decision,'' MGPA managing director Simon Treacy says. "We continue to see excellent opportunities in Hong Kong and we look forward to making further investments in due course.''

This purchase is part of a growing trend over the past few years of Asian REITs and overseas funds, particularly from Singapore and the US, looking at Hong Kong for suitable properties. A report by Colliers International says that foreign investors accounted for 10%t of HK$60 billion ($7.7 billion) in local commercial and industrial property investment last year. It adds that foreign funds will continue to look for industrial and office investment properties in Hong Kong this year, with total sales likely to jump 25% compared to last year.