Gaw Capital Closes on $1.3B Gateway Real Estate Fund V

Gaw Capital Partners has raised a total of $1.3 billion for its latest private equity real estate investment vehicle, as the Hong Kong-based firm announced a final close of its Gateway Real Estate Fund V last week.

46 percent of the commitments to the opportunistic fund came from Asia-based investors, with another 34 percent being sourced from North America, while Europe provided another 20 percent. The firm also secured a sidecar co-investment commitment of up to $500 million.

“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,” said Christina Gaw, managing principal and head of capital markets.

Gateway Fund V Continues to Focus on Greater China

Gateway Real Estate Fund V, according to Gaw, will target property assets in Greater China with selected exposure in Japan, South Korea, Australia and Southeast Asia. In addition to looking for opportunities in the region’s primary hubs, the company was also quick to point out that it was looking into second-tier Chinese cities with strong economic fundamentals.

“Fund V will capitalize on the high entry barrier and restrained liquidity in its target markets in Asia Pacific,” said Kenneth Gaw, managing principal and president of Gaw Capital Partners. “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.”

Following Beijing’s imposition of capital controls at the beginning of the year, China’s housing prices have seen continued rises despite the government taking measures to keep the market from getting out of control in first-tier cities and second- and third-tier cities have been following suit.

Fund V Hits the Ground Running

Since Gaw began raising capital for Gateway Real Estate Fund V  in 2015, the investment manager has already made several investments on behalf of its limited partners.

One of the fund’s investments to date includes its participation in a $33 million investment round by Shanghai-based naked Hub last year. Down Under the fund has already bought logistics platforms in Sydney and Melbourne as well as an office property in Perth due to be converted into student housing.

Also among the vehicle’s commitments were Gaw’s purchase of an office property in Japan’s second largest city, Yokohama, earlier this month. The 95,000-square-metre grade-A office made Gaw Capital’s fourth purchase in Japan.

In addition to those deals, the fund has also placed investments in a luxury residential building in Singapore and another housing project in Seoul.