This article is from the Australian Property Journal archive
MAJOR investors such as the Abu Dhabi Investment Authority (ADIA) have flocked to Gaw Capital Partners’ final fundraising for its internet data centre (IDC) platform which will invest in a portfolio of projects in China.
The real estate private equity firm has closed the fundraising bringing the total equity raised approximately US$1.3 billion.
Managing principal and head of China Humbert Pang said amid the backdrop of pandemic and the rapid adoption of 5G in China, there is a strong demand for data processing services due to the increasing use of data because of the social distancing measures.
“With most social and economic activities migrating online, data centres in promising locations along the densely populated region of China are emerging as valuable assets that produce stable rental income,” Pang said.
From 2010 to 2018, the total IDC market size in China grew more than 10 times from RMB 10.2 billion to RMB 127.7 billion. The compound annual growth rate of the market was 37%, doubling that of the global average during the same period.
Pang said the rapid growth of the IDC sector will be sustained in the coming years, spurred by China’s push towards greater digital transformation and technology adoption across sectors.
Head of capital markets and managing principal Christina Gaw said the final close of IDC fundraising follows a highly successful fundraising round for the Gateway Real Estate Fund VI.
“A wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) is the largest investor in the IDC Platform, with additional commitments made by other global institutional investors. These commitments we have received are a strong vote of confidence in Gaw Capital’s approach to IDC assets, which is a focused sector for us, and we have further plans to grow into other Asia regional markets,” Gaw said.
In addition to Gaw Capital Partners’ 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. Additionally, Gaw Capital also provides services for separate account direct investments in the global markets. Gaw Capital has also successfully developed a sizable logistics platform, medical-asset backed platform, mini-storage platform, premium outlet malls and education-related platform in recent years to help support the growth and management of these assets.
