Hong Kong’s Gaw Capital buys central Tokyo shopping centre for more than US$1 billion

Gaw Capital, a Hong Kong private equity firm focused on real estate, completed the acquisition of a shopping centre in central Tokyo – its largest transaction to date in Japan – in a deal worth more than US$1 billion.

Gaw teamed up with Singapore-based Patience Capital Group to buy and manage Tokyu Plaza Ginza. Gaw owns 91 per cent of the project and its partner holds the remaining 9 per cent, Gaw said in a statement on Friday.

Completed in 2016, Tokyu Plaza Ginza is one of the largest retail facilities in the Ginza district, has a couple of subway stations nearby and has a gross floor area of 50,093 sq m.

Gaw said it is dedicated to seizing opportunities in Japan’s vibrant market. It said it has around 655 billion yen (US$4.7 billion) in assets under management across Japan.

“With favourable macroeconomic fundamentals supporting Japan’s retail sector, this is a highly opportune time to invest,” said Isabella Lo, managing director of investments and head of Japan at Gaw Capital.

Retail sales volume in Tokyo continued to outperform, Gaw said, fuelled by robust spending on luxury goods by an increasing number of tourists and the depreciation of the yen. In addition, domestic consumption in Japan would benefit from a positive wage-growth outlook, Gaw said.