Hong Kong-based private equity real estate firm Gaw Capital Partners says it has reached final closing of its US$1.025 billion fourth China real estate fund, Gateway Real Estate Fund IV, according to a company release.
This fund is Gaw Capital’s largest investment vehicle. It will employ an opportunistic investment strategy, mainly targeting real estate assets that have favorable risk-return profiles in the Greater China and Asia Pacific region.
Limited Partners in the fund include sovereign wealth funds, endowments, pension funds and other types of institutional investors. Around 40% of the LPs come from Asia, 30% from North America and 30% from Europe.
The fund’s focus will be on tier-I cities such as Beijing, Shanghai, Guangzhou, Hong Kong, Macau and Taipei, as well as tier-II cities such as those in Jiangsu Province.
The Fund will also focus on city-center retail assets with high pedestrian traffic as well as centrally located commercial assets where the government’s tightening policy has taken effect and created attractive pricing.
It plans to invest at least 80% of its equity in Greater China and 20% in Asia Pacific region such as Japan, Korea, Singapore, Malaysia and elsewhere.
The fund intends to hold its investments for four to seven years. Gaw Capital will seek to add value by improving occupancy, increasing rent and strengthening tenant mix.
Gaw Capital currently manages four real estate funds targeting the Greater China and Asia Pacific region. It recently launched Gaw Capital Partners USA, which provides services for separate account direct investment and private equity real estate fund management in the U.S. and U.K. markets.
Since 2005, Gaw Capital has raised over US$3.387 billion. It currently has US$7.1 billion under management, including residential developments, retail centers, hotels and commercial properties.
