Hong Kong’s Gaw Capital Partners Successfully Closes Third Greater China / Asia-Focused Real Estate Investment Fund, New property investment vehicle attracts US$373.5 million


(Hong Kong, August 24, 2010) – Hong

Kong-based private equity real estate firm Gaw Capital Partners has completed raising its third fund focusing on investments in Mainland China real estate, raising US$373.5 million earmarked for “unprecedented

opportunities” beyond the major cities of Beijing, Shanghai and Guangzhou.

‘Gateway China Real Estate Fund III’ will continue to

target China’s

fast-growing mass market property sector in so-called second and third tier

cities – the country’s newer economic powerhouses, in addition to opportunities in the first tier

cities at the right price.

It targets both the residential sector, a focus of the firm since 2007 in response to the government’s urbanisation drive, while expanding into commercial sectors such as retail, offices

and hospitality.

Gaw Capital’s latest

successful fund-raising makes it one of the leading

real estate private equity fund managers in the region.

The firm already has over US$1.1 billion in equity capital under management in two

other funds, launched in 2005 for Gateway China Fund I and 2007 for Gateway Capital Real Estate

Fund II.

Investors in the new Gateway Capital Real Estate Fund III include US endowments and pension

funds, sovereign wealth funds, multi-family offices and more European investors

than previously attracted – as well as existing investors in the two initial



The eight-year

investment vehicle targets returns of more than 20 per cent, conservatively

leveraged at a loan-to-value ratio of no higher than 50 per cent.

While the fund’s

primary focus is selected real estate in Greater China, where around

80 per cent will be invested, 20 per cent will be allocated for opportunities arising elsewhere in Asia, especially in Southeast Asia where

Gaw Capital’s executive team has a solid track record.


Capital Chairman Goodwin Gaw said: “With the continued support of our

investors, we believe we are well positioned to participate in the continued

growth and transformation of China’s




in the next 20 years, as China

continues to transform from an export led economy to a more balanced economy,

will offer unprecedented opportunities.”


His brother Kenneth Gaw, the firm’s co-founder and

President, said:After almost five years and now with over US$1.5 billion in equity

capital under management, Gaw Capital Partners has now grown into one of the

leading real estate private equity fund managers in the region.


“Building on our ‘best in class’ acquisition and asset management teams,

I am confident that we will be able to continue to deliver strong returns to

our investors.


“With this successful track record, the latest fund will continue to

expand our regional coverage as well as product type.”


Humbert Pang, Managing Principal and head of the

firm’s China operation,

said: “With the new fund we are continuing our strategy since 2007,

expanding more into China’s

second and third-tier cities.


“Taking advantage of urbanization programs and recent policy initiatives to stimulate domestic

demand and growth, we are embarking not only on residential projects in these

cities but also integrated projects with commercial, offices, retail and even

hospitality elements.”


Christina Gaw, Managing Principal who


and capital markets division for Gaw CapitalPartners, involved

in fund raising and investor relations, noted that Gateway Capital Real Estate Fund III had been successfully completed despite a “tough fund raising environment in the past 18 months, with global

liquidity remaining relatively tight”.

She attributed the successful fund-raising exercise to Gaw Capital’s

“integrated company structure, strong track record and unique

positioning” in the Greater China region and selective Asian countries.


With its third fund, Gaw Capital Partners is

steering clear of real estate in China’s Tier 1 cities such as Beijing, Shanghai

and Guangzhou, with the exception of possible “distressed purchases” at

discount prices.



Gaw Capital is earmarking China’s

growing affluent


in emerging economic powerhouses such as Dalian,

Jiangsu Province and Chengdu where “government policies are much

more accommodating, even in today’s tightening environment”.