April 12, 2017, Hong Kong – Real estate private equity firm Gaw Capital Partners announced the final close of its fifth Greater China / Asia Pacific real estate fund, Gateway Real Estate Fund V, bringing total equity raised for the fund to its hard cap size of US$ 1.3 billion – Gaw Capital Partners’ largest fund to date. In addition to the US$ 1.3 billion raised, the firm secured a sidecar co-investment commitment of up to US$ 500 million.
Following a similar opportunistic investment strategy as its predecessor Gateway funds, Fund V will target real estate assets with favorable risk-return profiles mainly in Greater China and with selected exposure in Japan, South Korea, Southeast Asia and Australia. In addition to the primary gateway cities of Beijing, Shanghai, Guangzhou, Hong Kong, Macau and Taipei, the fund will also look at secondary cities in China which, demonstrate strong economic fundamentals and long-term real estate demand, such as cities in Jiangsu province.
Christina Gaw, Managing Principal and Head of Capital Markets, commented, “I am delighted to announce the closing of our biggest fund to date in the successful flagship Gateway China Funds series, which aims to build a diversified portfolio of assets in Asia Pacific. The current fundraise is testimony to our solid track record of delivering satisfying returns to our investors, our expertise in opportunistic real estate investment in this region and our strong team of in-house asset management capabilities.”
Investors in Fund V include sovereign wealth funds, endowments, pension funds and other top-tier institutional investors who have invested in the previous Gateway China Funds, as well as new investors to the fund. Out of the global institutional investors for Fund V, 46% come from Asia, 34% from North America and 20% from Europe.
Kenneth Gaw, Managing Principal and President of Gaw Capital Partners, said, “Fund V will capitalize on the high entry barrier and restrained liquidity in its target markets in Asia Pacific. We believe opportunities exist in the region to acquire large and partially or fully completed investment grade assets from over-leveraged investors at attractive valuations. And we are confident that our in-house operating platforms offer a significant competitive advantage over local market participants.”
The specific strategy for each target market will be developed based on local economic, demographic and market conditions. In order to have the flexibility to adapt its strategy to changing trends in a given target market, Gateway Fund V is not limited to a particular real estate asset class in any market where it is permitted to invest.
Gateway Real Estate Fund V has made several investments to date out of the commitments from its previous closings, ranging from logistics platforms in Sydney and Melbourne; an office property to be converted into student accommodation in Perth; a luxury residential building in Singapore; an office building in Yokohama; a residential project in Seoul; and a network of co-working spaces targeting Shanghai, Beijing, Hong Kong and other key cities in Asia.
In addition to Gaw Capital Partners’ five funds in the Gateway Fund series targeting Asia Pacific, Gaw Capital Partners also manages opportunistic funds in Vietnam and the US along with a hospitality fund targeting the Pan Asia region. Additionally, Gaw Capital also provides services for separate account direct investments in the global markets.
Since 2005, Gaw Capital Partners has raised equity of USD$ 7.5 billion and currently has USD$ 12 billion of assets under management.