Ping An Trust Invests $31M in Great Eagle California Projects

Pacific Eagle Holdings, the US subsidiary of Hong Kong’s Great Eagle Holdings, received some powerful new backing for its acquisitions of North American properties this week when the real estate investor and operator received $31.4 million from a fund operated by China’s Ping An Trust through a joint venture deal.

Under the terms of the JV, Pacific Eagle (US) Real Estate Fund sold 49 percent of a company holding properties in San Francisco and Los Angeles to Ping An DeCheng Great Eagle US An Ying Fund, according to a statement from Great Eagle. Sources familiar with Ping An’s operations say that Ping An DeCheng Great Eagle US An Ying Fund is a special purpose vehicle set up specifically to raise funding for this joint venture.

In the past two years Pacific Eagle, which is controlled by Hong Kong tycoon Lo Ka-shui, has accelerated its acquisitions properties on the west coast of the US.

JV Investment in California Luxury Projects

With this new support from the Ping An fund, Great Eagle is developing a condo complex on San Francisco’s Pine Street, and a portfolio of rental apartments on Cavalleri Road in Los Angeles’ tony Malibu area. Both projects were acquired by Pacific Eagle last year.

At 1545 Pine Street, the developer controlled by Hong Kong tycoon Lo Ka-shui is building 135,000 square feet (12,500 square metres) of residential space that it plans to market as 100 studio, one and two bedroom condominiums. Excavation work has already begun on the project, named The Austin, which debuted on the market this month.

Pacific Eagle acquired the portfolio of rental apartments in Malibu in September of last year, and now plans to reposition the rental units as high-end condominiums for sale. As part of the renovation plan the group of residences will be renamed the Cavallieri.

Great Eagle Bets Big on the US West Coast

The two residential projects are among a cluster of US acquisitions by Pacific Eagle in recent years, as chairman Lo Ka-shui focuses his attention on California and the Pacific Northwest.

Lo, who is the older brother of Shui On Land chairman Vincent Lo, last year led Pacific Eagle in acquiring a development site in San Francisco’s Central Market area for $19.8 million. Including the Pine Street project, Pacific Eagle bought three San Francisco sites in 2014-2015.

In November of last year, Pacific Eagle paid more than $124 million for a 15-storey commercial building in Seattle.

Pacific Eagle’s parent, Great Eagle, also owns The Langham hotel chain and controls a 62.7 percent interest in Hong Kong-listed Champion REIT.