Gaw Capital Partners, the Hong Kong-based private equity real estate firm, has raised $150 million in an initial capital raise for its first Asian hotels investment fund, PERE can reveal.
It is understood that capital raising for the fund is expected to reach $250 million eventually with as many as five investors committing the capital.
The vehicle is the latest example of Gaw Capital’s strategy of offering its investors funds dedicated to specific asset classes.
Most notably, last week the firm announced it had launched a China outlet mall fund alongside TH Real Estate, the real estate investment management firm owned by US pension manager TIAA. That vehicle is somewhat bigger than the hotel fund, with the two managers aiming to raise as much as $1.2 billion for it.
Last June, the firm raised $300 million from its investors for the first of its sector-specific vehicles, a logistics property development fund aimed at capitalizing a pipeline of assets being developed by a Shanghai-based logistics firm called Vailong. That fund was expected to be deployed in tandem with the firm’s flagship, China-centric opportunity fund series. The hotel fund will be invested in similar fashion. Accordingly, it carries an opportunistic risk and return profile.
The fund has been seeded with an initial investment in Singapore. In November, the firm purchased the BIG hotel in the city-state for S$203 million (then $143 million; €190 million). Once fully deployed, the vehicle is expected to contain between seven and ten assets.
Gaw Capital declined to comment.