Gaw Capital closes fourth China real estate fund above $1b
Gaw Capital Partners, the Hong Kong-based private equity real estate investor, has reached a final close on its fourth China real estate fund at the hard cap of $1.025 billion. It is the largest vehicle the firm has ever raised.
Gateway Real Estate Fund IV attracted investors including sovereign wealth funds, endowments, pension funds and other institutional investors. Asia accounted for 40% of commitments, with the remainder split equally between North America and Europe accounted.
"We are very pleased that many of our LPs from our previous funds again invested with us, showing their continuing support and trust," said Christina Gaw, managing principal and head of capital markets at Gaw Capital, in a statement.
The fund will employ an opportunistic investment strategy, targeting real estate assets with favorable risk-return profiles in the Greater China and Asia Pacific region. At least 80% of the corpus will be deployed in Greater China, with 20% going to other markets in the region, including Japan, Korea, Singapore and Malaysia.
Within Greater China, the fund will focus on primary cities such as Beijing, Shanghai, Guangzhou, Hong Kong, Macau and Taipei, as well as secondary cities that demonstrate strong economic fundamentals and long-term real estate demand. City-center retail assets with high pedestrian traffic as well as centrally located commercial assets are seen as a sweet spot, particularly given the impact of government tightening policies on pricing.
The holding period for investments will be 4-7 years.
Last month, Gaw Capital opened an office in the US and plans to raise a $300-500 million dedicated US fund in the fourth quarter.
The firm has raised more than $3.4 billion since 2005. It currently manages $7.1 billion over four real estate funds with investments in residential developments, retails centers, hotels and commercial properties.
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