This article is from the Australian Property Journal archive
PRIVATE equity firm Gaw Capital Partners has raised $US1.3 billion for a new real estate fund, which will invest in Greater China, Japan, South Korea, southeast Asia and Australia.
The Gateway Real Estate Fund V is Gaw Capital Partners’ largest fund to date. In addition to the $US1.3 billion raised, the firm also secured a co-investment commitment of up to $US500 million.
Fund V has made several investments to date out of the commitments from its previous closings, ranging from logistics platforms in Sydney and Melbourne; an office property to be converted into student accommodation in Perth; a luxury residential building in Singapore; an office building in Yokohama; a residential project in Seoul; and a network of co-working spaces targeting Shanghai, Beijing, Hong Kong and other key cities in Asia.
Head of capital markets and managing principal Christina Gaw said the new fund is part of the group’s strategy to build a diversified portfolio of assets in Asia Pacific.
“The current fundraise is testimony to our solid track record of delivering satisfying returns to our investors, our expertise in opportunistic real estate investment in this region and our strong team of in-house asset management capabilities,” she added.
Investors in Fund V 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.
Out of the global institutional investors for Fund V, 46% come from Asia, 34% from North America and 20% from Europe.
President Kenneth Gaw said Fund V will capitalize on the high entry barrier and restrained liquidity in its target markets in Asia Pacific.
“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. And we are confident that our in-house operating platforms offer a significant competitive advantage over local market participants.
“The specific strategy for each target market will be developed based on local economic, demographic and market conditions. In order to have the flexibility to adapt its strategy to changing trends in a given target market, Gateway Fund V is not limited to a particular real estate asset class in any market where it is permitted to invest,” Gaw said.
In addition to Gaw’s five funds in the Gateway Fund series targeting Asia Pacific, the group also manages opportunistic funds in Vietnam and the US along with a hospitality fund targeting the Pan Asia region. Gaw currently has $US12 billion of assets under management.
Gaw is the latest global real estate investment manager to target Australia. Earlier this month, Savills Investment Management’s new $1 billion-plus fund acquired the Quest East Perth hotel for $US68 million (approximately $90 million).
The new hotel will be owned of the Savills IM Asia Pacific Fund, which was recently launched and targeting core assets across Australia and Asia, namely in Singapore, China, Japan and Hong Kong.
It is the second asset for the fund after Savills IM acquired the Station Oxley centre last month from Folkestone, for $43.5 million.
Savills IM has more than $23 billion worth of assets across Europe, the US and Asia.
On the other hand, US private equity firm Blackstone is looking to capitalise on the strong appetite for retail investments by putting its $3.5 billion Australian shopping centre portfolio on market.
The 10 shopping centres include Clifford Gardens in Queensland, Forest Hill Chase and Brimbank shopping centre in Victoria; Rundle Place and 80 Grenfell St Adelaide in Adelaide; Greensborough Plaza in Melbourne; three Westfield shopping centres including Warrawong, Strathpine and Figtree and Top Ryde City in Sydney.
Australian Property Journal
