Private equity fund management firm Gaw Capital Partners said it would focus its new Asia real-estate fund, targeting to raise $1.5 billion, on investing in greater China’s retail, office and hospitality property in first and major second-tier cities.
The fund is also interested in logistics property, despite some saying China was starting to see too much supply, Gaw’s Chairman Goodwin Gaw told reporters on the sidelines of a MIPIM Asia summit on Tuesday.
“Logistics is equivalent to buying into e-commerce, so there’s great demand in logistics. There won’t be oversupply any time soon because the China market is so vast; the e-commerce volume will be much larger than the U.S. … the retail space will shift to logistics,” he said.
“We’re quite upbeat on hospitality because China’s domestic consumption is getting strong. (We’re interested in both) conventional and certain kind of experiential retail, also outlet mall we were quite successful on it… so we will continue to do it.”
Gaw said the firm, which commands assets of $10.61 billion under management as of second quarter this year, is also looking at logistics and tourism opportunities in Vietnam as many Asian factories shift their production to the Southeast Asian country.
Gaw, who advised consortium Supreme Key Ltd in buying InterContinental Hotels Group’s Hong Kong hotel for $938 million in July, said the buyer is planning to invest around HK$1.5-$2 billion ($193.5-$258 million) to renovate the interior of the hotel in 12-18 months, and make it more “green”.
The firm will continue to adopt a revitalization investment strategy in Hong Kong by renovating old industrial buildings to create more office space. But choices are limited as asset prices were quite high in the city now, Gaw said. ($1 = 7.7512 Hong Kong dollars)
(Reporting by Clare Jim; Editing by Gopakumar Warrier)
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