Gaw Capital Partners Closes Gateway Fund IV, Raising More than USD $1 Billion. The USD$ 1.025 Billion Fund is Gaw Capital Partners’ largest fund ever; Firm has Raised More than USD$ 3.387 billion since 2005
30, 2013 –Hong
Kong-based private equity real estate firm Gaw Capital Partners today announced
the final close of its fourth China real
estate fund, Gateway Real Estate Fund IV, bringing total equity raised for this fund to its hard cap size of US$ 1.025 billion - Gaw Capital
Partners’ largest fund ever. Gateway Fund IV will employ an opportunistic
investment strategy - targeting real estate assets that have favorable
risk-return profiles in the Greater China and Asia
Goodwin Gaw, Chairman and Managing Principal, said, “The success of our fundraising efforts is a
vote of great confidence in our successful track record of returns for our
investors and in our unique investment strategy – opportunistic real estate
investments in the Greater China and Asia Pacific.”
Partners currently manages four real estate funds targeting the Greater China
and Asia Pacific region and recently launched Gaw Capital Partners USA, which provides services for
separate account direct investment and private equity real estate fund management in the US and UK markets. Gaw
Capital Partners has raised equity in excess of US$3.387
billion since 2005 and currently commands assets of US$ 7.1
billion under management encompassing
residential developments, retail centers,
hotels and commercial properties.
Investors in Fund IV include sovereign wealth
funds, endowments, pension funds and other top-tier institutional investors.
The global institutional investors in Gateway Fund IV are truly a global mix: 40% of the investors come from Asia, 30% North
America and 30% from
Europe. The successful
fundraising for Gateway Fund IV speaks to the slightly improved sentiment toward
Asian real estate among global institutional investors. Global institutional
investors favor investments that offer value and potential for capital growth as global economies continue to improve.
Real estate assets maintain a special appeal - they are tangible and it’s an increasingly important asset class amongst
global investors who are diversifying their investment portfolios.
“We are very pleased that many of our LPs from our previous funds again invested with us, showing their
continuing support and trust,” said Christina Gaw, Managing Principal and Head
of Capital Markets who spearheads the firm’s
global fund raising efforts. “We
also managed to attract new LPs from around the world and we look forward to
building upon the success of our earlier real estate funds and providing
exceptional returns to our global investors,” she said.
Geographically, Gateway Fund IV’s focus will
be on gateway primary cities such as Beijing, Shanghai, Guangzhou, Hong Kong,
Macau and Taipei, as well as secondary cities in the Greater China which Gaw
Capital believes demonstrate strong economic fundamentals and long-term real
estate demand, such as China’s Jiangsu Province.
The Fund will also
focus on city-center retail assets with high pedestrian
traffic as well as centrally located commercial assets in Tier I and Tier II cities in
China where the government’s tightening policy has taken effect
and created attractive pricing. Gateway
Fund IV plans to invest at least 80% of its equity in the Greater
China and 20% in
Asia Pacific region such as Japan, Korea, Singapore, Malaysia and elsewhere.
Gateway Fund IV will employ an opportunistic
strategy, targeting assets that have favorable risk-return profiles; these
assets should display strong growth potential and value-added / repositioning opportunities.
The specific strategy for each target market
will be developed based on local economic, demographic, and market conditions. Gaw Capital also believes
that its in-house operating platforms will provide a significant competitive
advantage over local market participants.
Gateway Fund IV intends to hold its
investments for four to seven years. Gaw Capital will seek to add value
during the holding period by improving occupancy, increasing rent,
strengthening tenant mix, monitoring current market trends, and ultimately
determining optimal exit time.