New | Doubling down on Hong Kong’s long term outlook

Goodwin Gaw, 47, has made a career out of investing in real estate. In 2005, he co-founded the private equity real estate fund management firm Gaw Capital Partners, with his younger brother Kenneth to bring foreign capital into the mainland Chinese property sector. The group oversees US$10.61 billion in property investment on behalf of clients and the Gaw family worldwide. Forbes Magazine ranks the Gaw family 48th on their 2015 list of Hong Kong’s 50 Richest People with a net worth of US$1.5 billion. More recently, Gaw was in the spotlight as his family-controlled company Pioneer Global led a consortium to purchase the InterContinental Hong Kong in Tsim Sha Tsui for HK$938 million in July.

Could you tell me more about the purchase of InterContinental Hong Kong?

I am optimistic about Hong Kong’s long term outlook. We (Pioneer Global) privately invested quite a lot of money in the transaction because we reckon such a rare acquisition opportunity probably only happens once in your life. We have some long term investors who also believe in Hong Kong’s outlook. They believe this property is worth holding for 20 to 30 years. The hotel captures a spectacular view, overlooking Victoria Harbour. The harbour view is better than that you see from the Four Seasons Hotel (in International Finance Centre) on Hong Kong island.

Property consultants say it is one the most expensive hotel transactions in the world, in terms of the value per room. Was it expensive?

Many people overlook the special design of this hotel. It is rare that a 5 star hotel development has 30 to 40 per cent of space designated for restaurants. Their businesses are very good. It is almost like a retail mall but instead their retail tenants are restaurants. Excluding this portion, each hotel room is cheap.

From a different perspective, if you look at the land cost, the accommodation value cost is more than HK$12,000 per square foot. It is even cheaper than the land price in the New Territories.