Gaw Capital hits final close of China-focused IDC platform at $1.3b

The first hyper-scale project by the JV of Gaw Capital and Centrin Data Systems near Shanghai. Source: Gaw Capital

Hong Kong-based real estate private equity firm Gaw Capital Partners announced on Monday the completion of fundraising for its Internet data centre (IDC) platform, which targets to invest in a portfolio of projects in partnership with IDC developers and operators in China.

The final closing of fundraising brought the IDC platform’s total equity raised to approximately $1.3 billion, said Gaw Capital in a statement.

A wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), a sovereign wealth fund owned by the Emirate of Abu Dhabi, is the largest investor in the IDC Platform, with additional capital commitments made by other global institutional investors.

“Amid the backdrop of pandemic and the rapid adoption of 5G in China, there is a strong demand for data processing services due to the increasing use of data because of the social distancing measures,” said Humbert Pang, Managing Principal and Head of China, in the statement.

“With most social and economic activities migrating online, data centres in promising locations along the densely populated region of China are emerging as valuable assets that produce stable rental income,” said Pang.

Gaw Capital, whose portfolio spans across residential development, commercial offices, retail malls, serviced apartments, hotels and logistics, is growing more focus on IDC assets with a plan to further deploy the strategy into other Asia regional markets.

In China, the total IDC market size has grown over 10 times from 10.2 billion yuan ($1.49 billion) to 127.7 billion yuan ($18.69 billion) between 2010 and 2018. The compound annual growth rate (CAGR) of the market stood at 37 per cent, doubling that of the global average during the same period.

“The rapid growth of the IDC sector will be sustained in the coming years, spurred by China’s push towards greater digital transformation and technology adoption across sectors,” said the firm.

Gaw Capital is a private equity fund management firm that focuses on adding strategic value to under-utilized real estate assets through redesign and repositioning in the global market.

Since its inception in 2005, Gaw Capital has raised six vehicles in the Gateway Fund series targeting the Greater China and APAC regions. It also manages opportunistic funds in Vietnam and the United States, along with a Pan-Asia Hospitality Fund and a European Hospitality Fund.

In December 2019, Gaw Capital reached the final closing of Gateway Real Estate Fund VI at a hard-cap of $2.2 billion, making it the firm’s largest vehicle to date. Its Gateway Real Estate Fund V raised a total of $1.3 billion in April 2017.

The firm announced the final closing of the fourth fund, Gateway Real Estate Fund IV, at $1.025 billion in October 2013.

The sector diversification of Gaw Capital’s five Gateway funds from Gateway Capital Real Estate Fund II to Gateway Real Estate Fund VI, with combined total equity commitments exceeding US$9 billion in more than 69 investments as of Q4 2019. Source: Gaw Capital website.

Additionally, Gaw Capital provides services for separate account direct investments globally. It has developed a logistics platform, a medical-asset backed platform, a mini-storage platform, a premium outlet malls, and an education-related platform in recent years to help support the growth and management of these assets.

The firm has raised equity of $15 billion since 2005 and commanded assets of $25.7 billion under management as of the first quarter of 2020, according to its website.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.