Gaw Capital Partners has raised $1.3bn (€1.23bn) in the final close of its fifth Asia-Pacific real estate fund.

Gateway Real Estate Fund V is the Hong Kong-based company’s largest fund to date, and aims to target Asian markets where capital is constrained.

Gaw Capital said the fund will look for real estate assets with favourable risk-return expectations in Greater China, and selectively in Japan, South Korea, Southeast Asia and Australia.

As well as the primary gateway Chinese cities of Beijing, Shanghai, Guangzhou, Hong Kong, Macau and Taipei, it will also look at secondary cities in China that offer strong economic fundamentals and long-term property demand.

Managing principal Kenneth Gaw said: “We believe opportunities exist in the region to acquire large and partially or fully-completed investment-grade assets from over-leveraged investors at attractive valuations.”

He said the specific strategy for each target market will be developed based on local economic, demographic and market conditions.

The fund is not limited to any particular real estate sector.

Gateway Real Estate Fund V has already acquired logistics in Sydney and Melbourne with Australia’s Abacus Property Group, and as well as an office building to be converted into student accommodation in Perth.

The fund has also invested in Singapore, Japan and South Korea.

Investors in Fund V include sovereign wealth funds, endowments, pension funds and other institutional investors that have invested in previous Gateway China Funds.

Some 54% of the capital came from US and European investors. The balance was raised in Asia.

San Francisco Employees’ Retirement System last year committed $100m to the vehicle, following a similar commitment from the New York State Teachers’ Retirement System in May last year.