HK to get first listed property debt fund as banks cut lending

By the Editorial Team · Tuesday, October 6, 2026

Gaw Capital has filed to list Hong Kong’s first-ever property-focused private debt fund on the city's main stock exchange, targeting a HK$229 billion pipeline across several Asia-Pacific markets. This move addresses a financing gap caused by stricter banking regulations and aims to expand access to real estate private debt for a broader range of investors while supporting Hong Kong’s goal to become a top asset management center.

Hong Kong is set to host its first listed property debt fund as private equity firms move to address a growing financing gap in commercial real estate caused by banks scaling back lending. Gaw Capital, a Hong Kong-based real estate private equity firm managing US$3.6 billion in assets as of late 2025, filed on Friday to list its Gaw Capital Real Estate Private Debt OFC on the Hong Kong Stock Exchange's main board. This fund aims to become the city’s inaugural property-focused private debt vehicle.

The fund has identified a transaction pipeline valued at HK$229 billion, spanning markets in Hong Kong, South Korea, the Maldives, Thailand, and Australia. Most projects target an annual internal rate of return of around 10 percent. Gaw Capital attributed the reduced bank participation in commercial real estate lending to stricter capital requirements under the Basel framework. These international banking regulations increase risk weightings on property loans, raising the cost for traditional lenders to finance higher-risk, large-scale real estate projects.

According to Gaw Capital, the Asia-Pacific and Middle East real estate and infrastructure private debt market was expected to exceed US$161.4 billion by the end of 2023, with projections rising to US$372.7 billion by 2030. The firm anticipates private debt’s share of real estate financing in the Asia-Pacific region will grow to 12.8 percent by 2030, up from 8.4 percent in 2026.

The new fund plans to offer quarterly distributions to investors, though it noted that dividends are not guaranteed. It will be managed by Gateway Capital (Hong Kong), with DB Trustees (Hong Kong) serving as custodian. Structured as a closed-ended open-ended fund company (OFC) under Hong Kong law, the vehicle will not allow share redemptions. Investors seeking liquidity will need to trade their holdings on the local exchange.

Property private debt offers non-bank, asset-backed loans for real estate projects, providing a higher-yield strategy historically available only to institutional and high-net-worth investors. This launch aligns with objectives outlined in Hong Kong’s 2024 policy address, which emphasized expanding retail distribution channels for private funds to bolster the city’s position as a leading asset management hub.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.