06/07/2017

Gaw Capital Partners Makes Final Investment of US Value Add Fund (US Fund II) with Successful Acquisition of Landmark Hotel Property in San Francisco Bay Area

Gaw Capital Partners Makes Final Investment of US Value Add Fund (US Fund II) with Successful Acquisition of Landmark Hotel Property in San Francisco Bay Area
June 6, 2017, San Francisco - Real estate private equity firm Gaw Capital Partners announced that it has fully invested its US Value Add Fund (US Fund II) following the recent purchase of the Oakland Marriott City Center in California.
Located in downtown Oakland in the San Francisco Bay Area, the 21-storey hotel has 500 guest rooms and is conveniently located near freeway and underground rail transportation to downtown San Francisco. The location is also in close proximity to Napa Valley and Silicon Valley.
Goodwin Gaw, Managing Principal and Founder, Gaw Capital Partners, remarked, “I am pleased to announce that the recent purchase of the Oakland Marriott City Center on behalf of our US Value Add Fund (US Fund II) marks the fund’s final investment. The fund has completed a total of 12 successful investments in the office and hospitality sectors in the US over the past three years. Through a deep knowledge of the local markets, Gaw Capital has developed a track record of opportunistic purchases in emerging areas in the US and has established a reputation as a creative, credible and nimble firm which brings attractive opportunities when an open market process is not warranted.”

Valerie Yip, Managing Director of Gaw Capital USA and Co-Head of US Acquisitions, added, “The purchase of Oakland Marriott City Center demonstrates our unique ability to capitalize on favorable macro dynamics in an “up-and-coming” market like Oakland through an acquisition of what we believe to be a marquee asset.”

Additional properties under Fund II includePublic Hotel in Chicago, Hilton Del Mar near San Diego, Courtyard Oakland in downtown Oakland, Graduate Hotels - a platform with 10 hotels and 1544 keys for creating boutique hotels in the vicinity of US college campuses, the MacArthur in Los Angeles and offices in San Francisco, Los Angeles and Portland. The fund held a final close of US$ 315 million in October 2015.

Roman Nemtsov, Chief Operating Officer, Gaw Capital USA, said, “The main strategy of our US funds is to create value through design, creative repositioning and redevelopment in key US cities that are characterized by young professionals and above-average long-term population and employment growth prospects.”

Since 2012, Gaw Capital US and its affiliate have also managed a US club investment vehicle (US Fund I) with equity of US$ 110 million. To date, nine out of twelve investments of this vehicle have been exited with a realized IRR of 35% and two times equity multiple.

Outside the US, Gaw Capital Partners manages five commingled funds targeting Greater China and Asia Pacific, an opportunistic fund in Vietnam as well as a hospitality fund focused on the Pan Asia region. The company has raised USD$ 8.5 billion in equity since it was established in 2005 and commands assets of over USD$ 12 billion under management.