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
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
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.