Hong Kong's Gaw Capital raises $1 bln China real estate fund

HONG KONG, Oct 30 (Reuters) - Hong Kong-based private equity firm Gaw Capital Partners said on Wednesday it has raised a $1.025 billion real estate fund for investment in China, its biggest ever fund.

Gaw plans to invest at least 80 percent of its Gateway Real Estate Fund IV in Greater China and 20 percent elsewhere in Asia.

It will target the fund toward "gateway" cities such as Beijing, Shanghai, Hong Kong and Taipei, as well as cities with strong economic fundamentals and long-term real estate demand, such as in Jiangsu province.

Gaw will focus the fund on city centre retail assets with high pedestrian traffic and centrally located commercial assets in tier I and tier II Chinese cities, where the government's policy to stop property prices rising too quickly has created attractive pricing.

Gaw, which has $7.1 billion in assets under management, recently launched Gaw Capital Partners USA to raise up to $500 million to invest in U.S. commercial real estate. (Reporting by Stephen Aldred; Editing by Christopher Cushing)