Gaw Capital makes maiden Singapore hotel investment

The Hong Kong-based private equity real estate firm has acquired a boutique hotel in Singapore for S$203 million (€189.44 million; $143 million) 

The Hong Kong-based private equity real estate firm Gaw Capital Partners has made its first hotel acquisition in Singapore with the purchase of the BIG hotel for S$203 million (€189.44 million; $143 million).

The firm has acquired the property from the Singapore-based ERC Unicampus. BIG Hotel is a 94,657 square feet hotel located in central Singapore. It was originally an office building which was later converted into a hotel in the year 2013.

For Gaw Capital, this is its second hotel acquisition in the region in this year. In July, it led a consortium of investors in a landmark transaction to acquire the InterContinental Hotel in Hong Kong for $938 million. The deal, which would also see Gaw Capital commit additional equity for refurbishing the sprawling 503-room property, also marked the Chinese firm’s maiden separate account investment in the region.

JLL Hotels and Hospitality Group together with JLL Capital Markets Singapore acted as exclusive advisors on the sale process.

On the completion of the deal, Mike Batchelor, managing director, JLL Hotels & Hospitality Group, Asia said in a statement: “We are delighted to have brought this deal to a successful conclusion for both the seller and buyer. BIG hotel is a great property in a highly desirable location on a unique freehold land parcel. It offers an innovative limited service boutique hotel concept with an existing strong trading performance.”

Gaw Capital Partners has steadily been expanding its real estate portfolio outside of China, led by its mission to become a global real estate investment management business. Earlier in November, PERE revealed that the firm has started soft marketing for its latest pan-Asia opportunistic vehicle, targeting to raise $1.5 billion. The firm is planning to invest as much as 50 percent of the capital raised via Gaw Capital Real Estate Fund V into markets outside of China, which could include Vietnam, Korea and Japan among others.