Gaw Capital Partners’ GREF IV (Gaw Capital Real Estate Fund IV) Enters the China Logistics RE market with Vailog China


Vailog China

is a major logistics

developer in China
Deals to

Include Acquisition, Development and Management of Modern Warehouses in China

June 24, 2015 – Gaw Capital Partners, the Hong Kong–based real

estate private equity firm, announced that it has

reached an agreement with Vailog China for the acquisition, development and management of modern warehouses in

China through its GREF IV.


Vailog China entered

the China market in 2006 and has become a

major logistics developer in China, working in joint venture with other

first class developers such as GLP. As of June 2015,

Vailog China boasts a track

record of over 1,300,000 sqm of warehouses completed or under construction.


Gaw Capital’s

investments have been spanning the spectrum of residential development,

commercial offices, retail malls, serviced apartments, and hotels. Through this

important deal, Gaw Capital’s strategic capabilities will broaden to include

the acquisition, development and management of industrial real estate in China

as well.


GREF IV has committed

to several projects in Shanghai, Tianjin, Shenyang and Guangzhou. With further

capital injection from co-investment, this joint venture plans to acquire

another seven pipeline development projects in the next 12 months in order to build

up a high quality, nationwide logistics portfolio of one million square meters

of net leasable area.


Kenneth Gaw, President

and Managing Principal of Gaw Capital Partners, said, “We are quite pleased to partner with Vailog China

for this very meaningful deal. Currently, warehouse stock per capita in the US is 12 times that in China, indicating room for growth. Modern logistics stock in China only takes up about a very

small portionof total market stock – and this is a still

undersupplied sector versus other asset classes. Demand is driven among others by the rise of

consumption and e-commerce, which have grown by respectively 12% and 84%

annually over the last 7 years. Our cooperation with Vailog is aiming at this

market and will build a high quality Shanghai-centric nation-wide portfolio,

mostly on China’s tier-one markets.”


Christina Gaw, Head of

Capital Markets and Managing Principal of Gaw Capital Partners,alludes

to the success with the support from a consortium of Asian-based sovereign fund

investors to enable an initial platform size of USD 300 million, with a target of USD 1 billion eventually.


Walter Qian, CEO

of Vailog China, said “We are delighted to welcome Gaw Capital as a first class

partner for the development of our business. With its long experience and

in-depth real estate expertise, Gaw Capital will help Vailog reach important

business targets, including offering our customers a wide range of high quality

logistics facilities throughout China.


Gateway Real

Estate Fund IV, was closed in October 2013 and brought total

equity raised for this fund to its hard cap size of

US$ 1.025 billion – Gaw Capital

Partners’ largest fund ever. Gateway Real Estate Fund IV employed an

opportunistic investment strategy – targeting real estate assets that have

favorable risk-return profiles in the Greater China and Asia

Pacific region. The Fund has so far invested in 11 projects

in Beijing, Shanghai, Guangzhou, Tianjin, Shenyang, Hong Kong, Osaka, Tokyo and

Seoul. Its acquisition of Beijing Century Place was the largest single-asset

property deal by foreign firm in mainland China and was voted as “Asia Deal of

the Year 2014” by PERE.