November 21, 2017, Hong Kong– Real estate private equity firm Gaw Capital Partners acted as co-capital sponsor in the successful first close of US$550 million for the ERES APAC II – China Outlet Mall Fund.
This fund is backed by Allianz, Gaw Capital Partners, and TIAA General Account, a Frankfurt-based German asset management company, among others. Allianz is the largest investor with a 30% stake in the platform, TH Real Estate is the fund manager, RDM is the asset manager while Gaw Capital acted as co-capital sponsor and advisor, as well as a substantial investor (through its Gateway Real Estate Fund V), to the fund.
ERES APAC II is seeded by two leading designer malls, Florentia Village Jingjin in the city of Wuqing (located near Beijing and Tianjin) and Florentia Village Shanghai. The developer and seller of the two seed assets is a joint venture between Gaw Capital’s Gateway Real Estate Fund III, RDM, Waitex Group, and another institutional investor. RDM is part of Fingen Group of Italy and has built up a strong track record in operating premium outlet malls in Europe. In 2012, Gaw Capital invested in this venture which developed the six Florentia Village outlets in Jingjin, Shanghai, Guangzhou, Wuhan, Chengdu, and Hong Kong.
In five years, Florentia Village has become one of the most successful series of outlet malls in China, especially the Jingjin and Shanghai malls.Both malls are strategically located near transportation hubs such as the high-speed train station, subway station or airport, and have experienced double digit annual growth in visitor numbers within the first three years of operation. By the third quarter of 2017, the two malls had generated more than RMB 2.8 billion revenue, and expect to attract 9 million visitors by end of this year. The malls are expected to continue to experience excellent growth and make strong contributions to the ERES APAC II.
Kenny Gaw, President and Managing Principal of Gaw Capital Partners said, “Gaw Capital’s Gateway Real Estate Fund III is a significant investor in the JV platform which developed and owned these six premier outlets, and we believe the two seed outlet malls in Jingjin and Shanghai have strong growth potential going forward. We remain highly optimistic about the outlet mall sector in China and will continue to be involved as investor and advisor in the remaining operating assets under the Fund III platform.”
He added, “In addition, we are pleased to invest in the ERES APAC II – China Outlet Mall Fund through our Gateway Real Estate Fund V and will continue to work with our long-term partners in this business. With our in-depth experience and expertise in the China markets, Gaw Capital will also have an advisory role in the new vehicle, to ensure continued success of the platform.”
With over 12 years of investment experience in mainland China, Gaw Capital has an excellent track record of identifying trends and strategic locations and developing/managing premier properties in China.To date, funds under its management have invested in more than 31 projects in 16 cities in mainland China.