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

Following a similar opportunistic investment strategy as its predecessor Gateway funds, Fund VII focuses on real estate opportunities including office, retail, hospitality, industrial, internet data center (IDC), life science properties as well as private credit and thematic platforms across the Asia Pacific region, including Greater China, Japan, South Korea, Southeast Asia and India, Gaw Capital Partners said in a statement on Friday.

According to the statement, investors in Fund VII include sovereign wealth funds, endowments, pension funds and other top-tier institutional investors who have invested in the previous Asia Pacific (APAC) Gateway funds, as well as new investors to the fund.

Christina Gaw, Managing Principal, Global Head of Capital Markets and Co-chair of Alternative Investments at Gaw Capital Partners, said the firm is delighted to have successfully closed Gateway Real Estate Fund VII, especially considering the challenges brought on by the pandemic and rapid rates rise post pandemic.

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

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

She also said that although market uncertainties remain, history would have suggested that these challenging vintages often time offer the best opportunities in hindsight.

“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 said that the firm’s thematic-driven investments into sectors such as life science platform, data center and logistics warehouses have received positive response from its investors.

In addition, she said the private credit deals which the firm has been active in for the last 24 months in Asia region also offer attractive opportunities to institutional investors despite the current inflationary pressure, rising interest rates and potential recession risks.

Gateway Real Estate Fund VII has made several investments to date out of the commitments from its previous closings.

With continuing effort on thematic platform plays, Gaw Capital has expanded its presence in the Japanese market with the acquisition of a logistics portfolio across the Greater Tokyo area and Hyatt Regency Hotel in Tokyo.

Other investments range from data centers to logistics warehouses, as well as an outlet mall in Guangzhou and life science park in Shanghai.

The fund has also made several real estate-backed private credit investments in Hong Kong and Mainland China.

In addition to Gaw Capital Partners’ seven commingled funds in the Gateway Fund series targeting Asia Pacific, Gaw Capital Partners also manages value-add/opportunistic funds in the United States, a Pan-Asia Hospitality Fund, a European Hospitality Fund, a Growth Equity Fund and it also provides services for credit investments and separate account direct investments in the global market.

Gaw Capital Partners is a private equity fund management company focusing on real estate markets in Asia Pacific and other high barrier-to-entry markets globally.

The firm has raised equity of $23 billion since 2005 and commands assets of $36 billion under management as of first quarter of 2023.

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