Hong Kong-based Gaw Capital Partners has achieved a triumphant conclusion for its seventh Asia Pacific real estate fund, garnering an impressive US$3 billion in equity commitments.
Overcoming hurdles posed by the pandemic and surging interest rates, the family-run private equity firm exceeded expectations by surpassing the initially set hard cap of US$2.5 billion. This announcement, made last last month underscores Gaw Capital’s resilience and investor confidence.
The Gateway Real Estate Fund VII, spearheaded by Gaw Capital, has not only attracted commitments from a range of institutional investors but has also witnessed the participation of sovereign wealth funds, endowments, pension funds, and backers familiar with the esteemed Gateway series in addition to fresh investors venturing into the fund.
Christina Gaw, Managing Principal, Global Head of Capital Markets, and Co-Chair of Alternative Investments at Gaw Capital Partners, remarked, “This accomplishment stands as a testament to Gaw Capital’s steadfast team, adept at navigating shifting market dynamics, and the unwavering support and trust vested by our investors.” She reiterated the firm’s commitment to leveraging its team’s proficiency and insights to foster enduring value for its investor base.
The fund’s mandate extends into diverse areas, including pursuing investments in new economy and thematic properties across the Asia Pacific region. Notably, there’s a pronounced emphasis on pivotal markets such as China, Japan, Vietnam, South Korea, Singapore, Southeast Asia, and Australia.
Fuelled by capital from previous closings, the fund’s investments have encompassed landmark acquisitions. These include a noteworthy acquisition of a logistics portfolio in Greater Tokyo from Blackstone and a strategic partnership with US fund manager KKR to purchase the iconic Hyatt Regency Tokyo.
In a move showcasing Gaw Capital’s multifaceted approach, the fund made its mark in China by acquiring the Italian-themed Florentia Village Guangzhou outlet mall in Guangdong province.
Gaw Capital acted as purchaser and vendor in the transaction, reflecting its strategic involvement in Silk Road Holdings—a joint venture with Nuveen, US apparel firm Waitex Group, and Italy’s Fingen Group.
Furthermore, the fund ventured into real estate-backed private credit investments, underlining its adaptability and versatility in the ever-evolving landscape.
Christina Gaw’s optimism about the post-pandemic real estate arena is grounded in the firm’s readiness to seize emerging opportunities. Armed with a robust reserve of uninvested capital, Gaw Capital is poised to capitalize on potential openings.
“Our investments, driven by thematic considerations in sectors like life sciences, data centres, and logistics warehouses, have resonated positively with our investor community,” she stated. She also emphasized the potential of private credit deals, where Gaw Capital has exhibited activity over the past two years in the Asian region, notwithstanding the prevailing inflationary pressures, escalating interest rates, and potential economic downturn.Gaw Capital Partners, managing assets worth $36 billion as of the first quarter of this year, extends its impact through not just the APAC Gateway Fund series but also value-add/opportunistic funds in the US, Pan-Asia Hospitality Fund, European Hospitality Fund, and a Growth Equity Fund. The firm’s offerings also encompass credit investments and separate account direct investments across the global market.