Fund managers unite to start China mall outlet fund

TH Real Estate and Gaw Capital have united to start a luxury designer China outlet mall fund, set to be in high demand amid the rising middle class.

Gaw Capital would act as co-capital sponsor for the fund, which would be seeded with two existing assets, which include Florentia Village in Jingjin and Florentia Village in Shanghai.

The investment would offer investors the opportunity to gain long-term exposure to leading designer malls in China, TH Real Estate said.

The managers planned to grow the portfolio to $2 billion over the next five years.

TH Real Estate would act as the fund manager, and leverage their expertise as they already had a series of outlet funds across the globe (that totalled $4 billion), the firm said.

RDM Group would be the asset manager, as they had strong relationships with international luxury brands, expertise in outlet mall management and local market knowledge.

TH Real Estate Asia-pacific managing director, Chris Reilly, said: "This presents a rare opportunity for institutional investors to gain access to a niche sector, with a proven team".

Gaw Capital Partners president, Kenneth Gaw, said: "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 have a world class collection of international and domestic brands, and its authentic Italian architecture perfectly positions it to capture the imagination and aspirational spending of Chinese consumers," he said.