Gaw Fund Risks Default on $260 Million Shanghai Property Loan

A fund led by private equity firm Gaw Capital Partners failed to repay a $260 million loan tied to a Shanghai office tower that was due this week, according to people familiar with the matter, in a fresh sign of rising default risks in China’s battered real estate market.

Missing the deadline means creditor banks could declare a default on the loan, but that decision may take more time. Lenders could also still agree to extend the loan. The loan included two parts, an onshore portion that was due Tuesday and an offshore tranche that matured Wednesday, one of ...