Gaw Capital Partners Deploys Fund IV Capital with Investment in Seoul Officetel Towers, Investment is Company’s First Acquisition in Korea and the Second non-Greater China Gateway Fund IV Transaction

Hong Kong
Real estate private equity firm Gaw Capital Partners has announced that it has invested in the office, officetel and retail portions of a twin tower building in Seoul. Located within Seoul’s Yongsan District and CBD, Dongja 8 is Gaw Capital Partners’ second non-Greater China transaction for Gateway Fund IV, the first being Hyatt Regency Osaka. Previously, Gaw Capital Partners acquired five core assets in the US and UK on behalf of behalf of Korean institutional investors through its separate account services.This is the first acquisition Gateway Funds have made in Korea.

Goodwin Gaw, Managing Principal and co-founder of Gaw Capital Partners said of the acquisition: "We are excited about our first acquisition in Korea, which is a market we have been eyeing for years. This is a unique opportunity to acquire a property in such a bustling and convenient area of Seoul – and one with such high growth potential.”

The Property is the office, officetel and retail portions of a twin tower building (“Dongja 8”) located in the Yongsan district, south end of the CBD area of Seoul. Total gross floor area of the twin towers is 91,461 sqm (27,667 py) with seven underground floors designated for retail and carpark, and the Gateway Fund would be acquiring more than 75% of the floor area. The Property is in close proximity to Seoul Station in a neighborhood designated for and undergoing significant city redevelopment plans. Seoul Station is the busiest train station in South Korea and services an average of 100,000 passengers per day.

According to a recent announcement from South Korea’s Ministry of Trade, Industry and Energy: "The overall amount of foreign direct investment in South Korea rose from the same period last year…with a large growth in direct investment from Europe and Chinese-speaking countries. FDI pledges from European nations and Chinese-speaking countries, including Hong Kong and Singapore, spiked 417.6 percent and 295.1 percent on-year, respectively, to approximately $2.26 billion and $719 million.”

In recent years, Gaw Capital Partners has been providing global direct investment services to strategic Asian institutional investors. Notable transactions include 333 Market Street in San Francisco in 2010, Three First National Plaza in Chicago in 2011, Vintners’ Place in London in 2012, Cupertino Gateway in Silicon Valley in 2013, the Lloyd’s Building in London in 2013 and Waterside House in Paddington London in 2013. In addition to leading the acquisition process (including due diligence), Gaw Capital Partners also provides debt financing advising and asset management in such transactions. Five of the direct investment transactions were backed by Korean institutional investors.

Gaw Capital Partners has raised equity in excess of US$3.8 billion since 2005 and currently commands assets of US$ 8.5 billion under management encompassing residential developments, retail centers, hotels and commercial properties. Gaw Capital Partners was named Asia Firm of the Year 2013 by Private Equity Real Estate (PERE). PERE also named Gaw Capital Partners' Chairman and co-founder, Goodwin Gaw, Asia Industry Figure of the Year 2013. Gaw Capital Partners also received AsianInvestor’s award for “Best launch: Real Estate (private)” in 2014.