Gaw Capital to raise $1.5bn for Chinese real estate

Hong Kong real estate investment manager Gaw, formerly Gateway Capital, is planning to raise a third fund for China.

Gaw Capital plans to raise a $1.5 billion ($1.2 billion) fund to invest in Chinese real estate.

It is planning to develop middle class and mass market residential property in secondary cities such as Chongqing, Dalian and Xuzhou.

Goodwin Gaw, chairman and co-founder, revealed the plans at the MIPIM Asian conference in Hong Kong.

“[Mass housing] is a sector that the government wants to encourage. You want to make sure that the government’s wind blows in the same direction as you,” Gaw said.

He is also interested in investing in the Sichuan province Chengdu, where the Chinese government is pumping rescue finance following the earthquake in May 2008.

Gaw is hoping to coral capital from large US investors and sovereign wealth funds, as he anticipates that China’s housing market will recover faster than other markets.

The fund will also target retail properties in China’s biggest cities.

The company, formerly called Gateway Capital currently manages two funds, Gateway China fund I and Gateway Capital Real Estate Fund II, with combined assets under management of $1 billion.

The first fund is completely invested and the real estate fund has invested approximately 70 percent.