Gaw Capital Raising $360M US Value-Add Fund

Goodwin Gaw

Goodwin Gaw’s latest US fund raised half of its cash from Korea

Funds, fund-raising and a unique Singapore retail property lead today’s real estate headlines as we finish off our first week’s worth of November. Maybe BlackRock should have followed the lead of Hong Kong’s Gaw Capital after the US asset management giant fell $500 million short of the billion dollar goal for its latest PE fund, and Gaw may be raising half of the money for its USD vehicle from the peninsula. Meanwhile, down in Singapore, a company named Hiap Hoe bought out the city’s best-known red light district. Read on for all these stories and more.

Gaw Raising Half of $360M US Value-Add Fund From Korea

Hong Kong-based real estate investment firm Gaw Capital Partners is on track to raising 200 billion won ($180 million) for its 400 billion won ($360 million) US value-add fund from South Korean institutional investors, while looking to increase investment in residential facilities in downtown Seoul.

The US Value Add Fund III is reportedly targeting around 15% annual return from US commercial real estate, coming on the heels of its $1.3 billion opportunistic real estate fund closed in April to target the Greater China and Asia Pacific region. Read more>>

BlackRock Closes Latest Asia Fund at $500M – Halfway to Goal

US-based global investor BlackRock has raised over $500 million for its Asia-focused realty vehicle, Asia Property Fund IV, which it had launched with a fundraising target of over $1 billion. The fund’s final close at half the target amount took place in September this year, according to a report by PERE on Monday.

The fund’s final close at half the target amount took place in September this year, according to a report by PERE on Monday. Read more>>

GIC Agrees to Swap Stake in $432M Sydney Property

Singapore’s sovereign wealth fund GIC and Australian property group Vicinity Centres have agreed to undertake a property swop.

Vicinity will exchange a 49 per cent stake in Chatswood Chase Sydney mall worth A$562.3 million (S$588 million), for a 50 per cent stake in GIC’s Queen Victoria Building, The Galeries and The Strand Arcade (known as the Sydney CBD Centres), worth A$556 million. Read more>>

London’s M&G Spends $211M on Pair of Asian Warehouses

M&G Real Estate has acquired two logistics assets for $211m (€182m) for its $3.2bn core Asia portfolio.

M&G Real Estate Asia said it has acquired Homeplus Hub Logistics Centre in South Korea for $136m, its first logistics acquisition in the country, and Higashi Ogijima Logistics Centre in Japan for $75m. Read more>>

China’s CCB Backs Shenzhen Rental Housing Scheme

China Construction Bank Corp on Friday joined hands with major real estate developers to provide long-term housing for rent and launched a loan product for tenants in Shenzhen, Guangdong Province.

Taking a strong foothold in mortgage loans, the second largest commercial bank by assets in China signed contracts with 11 companies, including large developers such as China Vanke Co Ltd, China Evergrande Group and Country Garden Holdings Co Ltd, to provide 5,481 houses for long-term rent in Shenzhen. Read more>>

Hiap Hoe Buys Commercial Space at SG’s Orchard Towers for S$162M

Hiap Hoe is acquiring 21 shops and 38 offices at Orchard Towers – a building best-known for housing Singapore’s most centrally-located brothels. The property group said it had entered into a sale and purchase agreement to acquire a 100% stake in Golden Bay Realty from AFP Land – a wholly-owned subsidiary of Sinarmas Land – for $162 million.

The retail podium of the 18-storey building is home to a number of bars and nightclubs frequented by independent service providers, and its Wikipedia entry describes it as being “best known as a landmark entertainment complex famously described as the “Four Floors of Whores” or simply the “Four Floors..” Read more>>

Mainland Developers Turn to ABS to Fund Rental Housing Projects

Debt-laden Chinese real-estate developers struggling to raise capital have a new way to go “asset-light” — selling asset-backed securities based on rents.Apartments are for living, not speculation, the Communist Party concluded at this year’s twice-a-decade congress. In just six years, prices in the 30 largest cities have doubled, making housing unaffordable for the likes of migrant workers and university graduates. Read more>>

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