Gaw Capital Partners, the Hong Kong-based private equity real estate firm, has raised around $200 million of equity commitments for its third China-focused real estate fund.
The fund, which went on the fundraising trail last April and is due for final close later this month, has a target of $500 million. The vehicle will target sectors including residential and retail across China’s tier II and tier III cities
Investors in the fund are expected to be similar to those LPs in funds I and II which included US endowments and pension funds, as well as sovereign wealth funds.
The seven-year fund will target returns of more than 20 percent and seek to deploy leverage at a loan to value ration of no higher than 50 percent.
Gaw Capital co-founder Goodwin Gaw would not comment on the fund although he did talk to PERE about his thoughts on the current investment climate in China. To read what he said see this month’s issue of PERE.
According to Gaw Capital’s website, the firm has predominantly invested in residential assets historically, while it has also invested in retail malls, offices, hospitality and mixed use assets as well as pre-IPO exchangeable bonds. Geographically, Gaw Capital has invested more equity in Shanghai and Guangzhou than any other Chinese cities.