Gaw Capital Partners & Sino-Ocean Land Buy Chicago’s Soho House for US$95m

Date: April 2018

Location: Fulton Market, Chicago, USA

Name: Soho House Chicago

No. of Keys: 40

Seller: Local developers Shapack Partners and AJ Capital. Gaw Capital had previously owned an undisclosed stake in the building.

Gaw Capital partnered with local real estate developers Shapack Partners and AJ Capital to buy the century-old former warehouse for $6.5 million in 2012.

The partners are believed to have invested more than $66 million to refurbish the 115,000 square foot industrial facility for British private member’s club Soho House & Co.

Local affiliate Soho House Chicago signed a 20-year lease to occupy the building in 2014.

Buyer: Hong Kong private equity shop Gaw Capital Partners teamed up with Chinese developer Sino-Ocean Land to buy the boutique hotel and members’ club in Chicago’s booming Fulton Market neighbourhood last month.

Gaw are or have been involved with Bay Bridge Apartments in HK, Four Seasons Bora Bora, Hotel G in Singapore and Beijing, Hyatt Regency Osaka, Novotel HK and The Ambassador in Chicago.

Since it’s inception in 2005, GCP has raised equity of USD$ 8.7 billion and commands assets of USD$ 13 billion under management as of the third quarter of 2017. Gaw Capital Partners currently manages four real estate funds targeting the Greater China and Asia Pacific region.

Additionally, the firm manages opportunistic funds in Vietnam and the US along with a hospitality fund targeting the Asia Pacific region. Gaw Capital also provides services for separate account direct investments in the global markets.

Huarong International Financial Holdings, a unit of China’s largest distressed debt manager China Huarong Asset Management, also joined the deal for the six-storey building at 113 North Green Street.

Price: US$95m

Price per Key: US$2,375,000

THPT Comment: Wow £2.37m a key, that’s a great hefty price….the pull of UK’s Soho House?