Gaw Capital Partners concludes final close of Gateway Real Estate Fund VII at $3B

Gaw Capital Partners, a Hong Kong-based real estate private equity firm, has announced the final close of Gateway Real Estate Fund VII, its seventh Asia Pacific real estate fund, bringing the fund’s total equity raised to $3 billion.

According to a statement released by Gaw Capital Partners on Friday, Fund VII pursues real estate opportunities across the Asia Pacific region, including Greater China, Japan, South Korea, Southeast Asia, and India, with a particular emphasis on office, retail, hospitality, industrial, internet data center (IDC), and life science properties as well as private credit and thematic platforms.

Investors in Fund VII, according to the statement, include both new investors and sovereign wealth funds, endowments, pension funds, and other top-tier institutional investors who made investments in the earlier Asia Pacific (APAC) Gateway funds.

Gaw Capital Partners’ Christina Gaw, Managing Principal, Global Head of Capital Markets, and Co-Chair of Alternative Investments, expressed the firm’s delight at closing Gateway Real Estate Fund VII, particularly in light of the difficulties posed by the pandemic and the sudden increase in interest rates that followed.

“This achievement is a testament to Gaw Capital’s dedicated team in adapting to changing market conditions and the ongoing support and confidence of our investors,

“Leveraging our team’s expertise and insights, we look forward to creating long-term value for our investors,” she said.

In addition, she noted that despite ongoing market uncertainties, history would have suggested that, looking back, these difficult vintages frequently present the best opportunities.

“We remain optimistic about the post-pandemic real estate market and are well-positioned to seize opportunities that arise with dry powder amassed,” she said.

She claimed that the company’s thematic investments in industries like data centers, logistics warehouses, and life science platforms have been well received by its investors.

Additionally, she added that despite the current inflationary pressure, rising interest rates, and potential recession risks, the private credit deals in the Asia region in which the firm has been active for the past 24 months present institutional investors with compelling opportunities.

As a result of the commitments from its prior closings, Gateway Real Estate Fund VII has so far invested in a number of different projects.

Gaw Capital has increased its market share in Japan through the acquisition of the Hyatt Regency Hotel in Tokyo and a logistics portfolio spanning the Greater Tokyo area as part of its ongoing focus on thematic platform plays.

Other investments include life science parks in Shanghai and Guangzhou, data centers, logistics warehouses, and outlet malls.

The fund has also invested in a number of private credits in Hong Kong and Mainland China that are backed by real estate.

Private equity fund manager Gaw Capital Partners focuses on the Asia Pacific real estate market and other high barrier-to-entry markets worldwide. Since 2005, the company has raised $23 billion in equity, and as of the first quarter of 2023, it is in charge of $36 billion in assets.