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TH Real Estate and Gaw Capital partner to raise capital for China outlet mall strategy

Florentia Village Jingjin

TH Real Estate has announced plans to launch a China Outlet Mall Fund. Gaw Capital will act as co-capital sponsor for the product which will be seeded with two existing assets, Florentia Village, Jingjin and Florentia Village, Shanghai.

The proposed investment offers institutional investors an opportunity to acquire and gain long-term exposure to a scalable portfolio of leading designer outlets malls in China. TH Real Estate aspires to grow the seed portfolio to c.$2bn over the next five years.

TH Real Estate will be the fund manager for the product, leveraging its expertise from an existing series of outlet mall focused strategies across the globe, having built up a $4bn global portfolio. The RDM Group will act as asset manager. Their expertise in outlet mall management, local market knowledge and strong relationship with international luxury brands will be important in ensuring the growth of the existing assets and successful launch of any pipeline assets.

Harry Tan, Head of Research Asia-Pacific at TH Real Estate, said: “China is one of the fastest growing and most lucrative retail markets in the world. Urbanisation and the creation of wealth have seen Chinese consumers’ focus shift from basic needs to improving their quality of life, with an additional emphasis on brand consciousness. Luxury designer outlet malls are in prime position to benefit from these structural trends, yet supply remains at extremely low levels relative to developed markets. “

Chris Reilly, Managing Director, Asia-Pacific at TH Real Estate, added: “This presents a rare opportunity for institutional investors to gain access to a niche sector, with a proven team. The strategy aligns well with our philosophy of creating products that are designed to benefit from the structural growth sectors of Tomorrow’s World.”

Kenneth Gaw, President of Gaw Capital Partners, said: “Our investment in outlet malls in China has been a highly successful strategy since 2012.  The rapid expansion of China’s middle class and their spending power has been extraordinary, especially as seen in the retail and tourism sectors. Florentia Village outlet malls, with a world-class collection of international and domestic brands, and authentic Italian architecture, are perfectly positioned to capture the imagination and aspirational spending by Chinese consumers.”

Issued by Henderson Real Estate Asset Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority. TH Real Estate is a name under which Henderson Real Estate Asset Management Limited provides investment products and services.

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