San Francisco, CA
Korea’s MDM Backed Gaw San Francisco, Tokyo Buys – Mingtiandi
North Park MDM is reported to have backed Gaw Capital Partners’ acquisition of North Park in San Francisco
In recent months Korean investors have been reported to have lost as much as 70 percent on US office investments made before the pandemic, but institutions from the home of BTS and Blackpink may still be open to new opportunities in the land of freedom, with a Seoul-based asset manager recently coming out as having backed Gaw Capital Partners acquisition of a San Francisco office project late last year.
MDM Asset Management said earlier this month that it is a co-investor in Gaw Capital Partners’ $90 million October acquisition of the North Park campus on the Embarcadero waterfront from Blackstone, with the firm explaining the deal as part of an overseas expansion plan.
“We are investing in creating new markets, looking beyond the immediate crisis to the distant future,” MDM International chief executive Kim Jae-chan, told local media. “We will selectively invest in various global partnerships and overseas high-quality assets, considering the economic downturn as an opportune time for investment.” Gaw Capital had not responded to inquiries from Mingtiandi by the time of publication.
Showing a taste for opportunistic deals, MDM also backed Gaw Capital’s $409.3 million joint acquisition of the Hyatt Regency Tokyo hotel with KKR in March last year, the Korean firm said, as that property’s owner, transportation giant Odakyu Electric Railway, continues to reel from the impact of the pandemic.
Digging into Discounts
In San Francisco, Gaw and MDM achieved around a two-thirds discount when acquiring the low-rise commercial complex, compared to the $245 million that Blackstone had paid to buy the property from Gaw Capital in 2018. In speaking to Korean media, MDM described the investment as a vote of confidence in San Francisco’s resiliency.
MDM International chief executive Richard Kim Jae-chan
“Given the excellent surrounding environment and the city’s ability to swiftly overcome global financial crises, it is a preferred location for information technology companies and investment firms,” MDM said, expecting the asset to overcome the challenges of the global market thanks to its location
Office vacancy in San Francisco has climbed for 15 straight quarters with more than 30 percent of Grade A space in the city left unoccupied at the end of September, which was up by 25 percentage points from the end of 2019, according to a report from JLL.
MDM’s belief in the US market comes despite its compatriots at Mirae Asset Global Investments having reportedly taken a 30 percent haircut last October when they sold a four building office complex in Dallas for $580 million. A Mirae US real estate fund which matured in May of this year is said to have lost 70 percent of its value as its office bets went bad.
Together in Tokyo
In Japan, MDM backed Gaw Capital’s investment in the 746-room Hyatt Regency, with the Korean firm describing the deal as an opportunity to profit from financial disruption in the wake of COVID-19.
“During the pandemic, many Japanese corporations faced liquidity issues, which led to the Hyatt Regency Hotel being offered for sale at a discounted price. With the relaxation of epidemic measures and increase in tourism with trends like ‘revenge travel’, it was a good opportunity to invest in undervalued assets during the COVID crisis. Since the hotel has aged, we plan on doing interior renovations over the next two years before reselling,” a representative from MDM told local media.
Odakyu Electric Railway, one of Japan’s largest travel companies, described the sale of the 71,512-square-metre luxury hotel as part of a larger effort to restore the company’s financial health and restructure its business portfolio after the pandemic.
Situated next to Shinjuku Central Park and the Tokyo Metropolitan Government Building, the Hyatt Regency’s new owners are said to have plans to upgrade the 1980-vintage building.
MDM, which has a development business which had supplied 22,775 residential units across Korea as of February 2022, also teamed up with Gaw Capital to make its first overseas acquisition in 2017 when it invested in the Hong Kong company’s third US fund.
Familiar with Korean Capital
In addition to the partnership with MDM, in 2022 Gaw Capital worked with Gangnam-based private equity firm IMM Investment to invest in Dreammark1, a data centre operator in Seoul.
In October 2018, Gaw Capital, Korean Teachers’ Credit Union and other Asian investors agreed to acquire the 4 and 5 Harbour Exchange on London’s Isle of Dogs for £36.2 million.
Gaw Capital teamed with Korean sovereign wealth fund KIC to acquire Hong Kong’s Intercontinental Hotel for $938 million in 2015, with the partners having since reopened that 503-room Kowloon property under the Regent brand.
It’s series finale time, and it’s rubber match time, as the San Francisco Giants host the Atlanta Braves.
It’s a battle of Cy Young southpaws. For the Giants, it’s Robbie Ray, who won the award in 2021 in the American League. Ray, a 34-year old two-time All-Star, is making his 17th appearance of the year, and is 6-6 with a 3.70 ERA, a 4.80 FIP, and 80 strikeouts to 42 walks in 87.2 innings. After a rough patch, he’s been exceptional in his last two games, including allowing just an unearned run in eight innings against the Athletics his last time out.
For the Braves, it’s Chris Sale, who won the prestigious pitching award in 2024. Sale, a 37-year old nine-time All-Star, has made 14 starts, and is 8-5 with a 2.14 ERA, a 2.71 FIP, and 99 strikeouts to 21 walks in 84 innings. He allowed two unearned runs in 5.2 innings against the Milwaukee Brewers in his last start.
Enjoy the game, everyone.
Who: San Francisco Giants (34-48) vs. Atlanta Braves (49-32)
Where: Oracle Park, San Francisco, California
Regional broadcast: NBC Sports Bay Area
Radio: KNBR 680 AM/104.5 FM, KSFN 1510 AM
San Francisco, CA
People’s Budget Coalition Claims Victory After San Francisco Budget Restores Most Proposed Service Cuts – Davis Vanguard
By Vanguard Staff
SAN FRANCISCO — The San Francisco People’s Budget Coalition declared a major victory this week after the San Francisco Board of Supervisors’ Budget and Appropriations Committee advanced a budget proposal restoring nearly all of Mayor Daniel Lurie’s proposed cuts to community organizations and workers providing essential services throughout the city.
The coalition credited months of organizing by labor unions, community organizations, residents and advocates for reversing many of the reductions initially proposed in the mayor’s budget. The committee-approved budget now moves to the full Board of Supervisors and then to Mayor Lurie for final approval. According to the coalition, few, if any, additional changes are expected during that process.
The coalition said thousands of San Francisco workers, residents and community members participated in neighborhood town halls, marches, rallies, phone banks, letter-writing campaigns and demonstrations to pressure city leaders to restore funding for programs serving vulnerable populations.
“This budget represents a remarkable victory for every single San Francisco resident,” said Anya Worley-Ziegman, coalition coordinator for the San Francisco People’s Budget Coalition.
“And it shows that public pressure works. Showing up works. Organizing, going out into communities where people will see their lives impacted by cuts, where people feel like their government and their representatives aren’t listening to them, and giving people an outlet to make their voices heard can make real change.”
Worley-Ziegman credited “the thousands of people, workers, unions, community and advocacy organizations, as well as the leadership of Budget Chair Connie Chan and Supervisors who fought for their districts’ priorities” with helping restore “tens of millions of dollars for essential programs serving our city’s most vulnerable populations.”
“Dr. Martin Luther King Jr. reminds us that budgets are moral documents, and today, City Hall seems to agree,” Worley-Ziegman added.
According to the coalition, many of the mayor’s proposed reductions affecting LGBTQ+, immigrant, student and homeless services were restored through the city’s annual budget “add-back” process during the Budget and Appropriations Committee’s final meeting, chaired by Supervisor Connie Chan.
The coalition said restorations include tens of millions of dollars for senior services, housing and rent assistance, Free City College, HIV services, immigrant services and other community programs.
The organization argued that many of the programs initially targeted for reductions serve communities that are already facing challenges resulting from actions by the federal government. The coalition said restoring those programs demonstrates continued city support for immigrants, LGBTQ+ residents, Black, Indigenous and other communities of color, as well as individuals struggling with mental health, substance use disorders or homelessness.
The coalition said investments in those communities strengthen the city and help maintain San Francisco’s reputation as a welcoming and inclusive city.
Despite celebrating the committee’s actions, the coalition said significant fiscal challenges remain. It noted that not all proposed reductions were fully restored and that city officials project next year’s budget deficit to exceed this year’s.
The coalition argued that San Francisco possesses substantial wealth, particularly amid the city’s growing artificial intelligence industry, and said city leaders should pursue additional revenue sources to sustain public services rather than relying on service reductions.
“San Francisco is one of the wealthiest cities in the wealthiest country in the world, and with the AI boom, it’s only getting richer,” Worley-Ziegman said.
“The fact that we need to exert this much time and energy fighting for such a small slice of the pie is, frankly, as ridiculous as it is shameful.”
“We should be laser focused on expanding the pie. We need to be talking about IPO taxes, wealth taxes, mansion taxes, and every policy tool available to close future deficits,” Worley-Ziegman continued.
“It feels like every year our leaders tell the most vulnerable communities to eat cuts and make ‘hard choices,’ while simultaneously opposing comically small taxes on the city’s wealthiest and well connected residents.”
“It should not be this hard to get an immigrant mother on the cusp of eviction $50 to make rent, or a senior living with HIV on our streets counseling or a hot meal.”
Worley-Ziegman concluded by urging advocates to continue organizing beyond this year’s budget process.
“Yes, let’s celebrate this win, but don’t forget that there’s so much more work to do if we want to move San Francisco forward without leaving its most vulnerable residents behind.”
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Categories:
Breaking News San Francisco
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budget advocacy community services Connie Chan Daniel Lurie People’s Budget Coalition San Francisco budget
A suspect was arrested Saturday after a shooting near San Francisco’s Pride celebrations left one person wounded and an officer hurt during a foot chase, police said.
The San Francisco Police Department said officers were monitoring Pride events near United Nations Plaza around 3:32 p.m. when the shooting occurred.
Officers found a victim suffering from a gunshot wound and immediately began rendering aid. The victim was taken to an area hospital with injuries that were not life-threatening.
Police said officers in the area quickly located a person matching the suspect’s description, prompting a foot pursuit. During the chase, one officer suffered minor injuries.
The suspect was eventually taken into custody, and the person’s name has not been released.
Police said the investigation remains active despite the arrest.
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