Real estate private equity firm Gaw Capital Partners has reached the final close of its sixth Greater China / Asia Pacific real estate fund, Gateway Real Estate Fund VI, bringing the total equity raised for the fund to its hard cap size of US$2.2 billion, the firm’s largest fund to date.
Gaw Capital also secured a sidecar co-investment commitment of up to US$800 million.
Gateway Fund VI, which Gaw says will follow an opportunistic strategy similar to its predecessor, has already begun deploying capital to acquire assets within the vehicle’s target markets, which focus on Greater China, along with more limited exposure to Japan, Vietnam, South Korea, Singapore, Southeast Asia and Australia.
In addition to China’s primary gateway cities of Beijing, Shanghai, Guangzhou and Hong Kong, Fund VI will also consider operating thematic platforms and pre-IPO real estate companies looking for strategic capital in order to capture specific market trends and address particular needs.
“We are delighted to be closing Fund VI after a highly successful fundraising round. The commitments we have received are a strong vote of confidence in Gaw Capital’s approach to adding strategic value to a diverse range of under-utilized real estate assets throughout the Asia Pacific region and its ability to deliver value for investors. Our increased expansion into thematic platforms such as data centers, healthcare and education-related real estate platforms are very welcomed by our investors. These are followed by our successful execution in other existing thematic portfolios such as retail outlet malls and logistics,” said Christina Gaw, Managing Principal and Head of Capital Markets.
Investors in Fund VI 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. Of Fund VI’s global institutional investors, 37% come from Asia, 17% from North America and 46% from Europe.
“As a region that is both maturing and still growing rapidly, Asia offers a great diversity of real estate investment opportunities,” said Kenneth Gaw, Managing Principal and President of Gaw Capital Partners.
Gateway Fund VI will develop specific investment strategies for each target market based on local economy, population and market conditions. In order to be able to adjust its strategy flexibly to the changing trends of the target market, the fund will not be limited to investing in any particular real estate category.
In addition to the six funds in the Gateway Fund series targeting Asia Pacific, Gaw Capital Partners also manages opportunistic funds in Vietnam and the US along with a Pan Asia Hospitality Fund and European Hospitality Fund.