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Sovereign, public pension funds investing more in real estate and infrastructure: report

Posted on 22 May 2015 by VRS  |  Email |Print

Sovereign wealth funds and public pension funds have been moving aggressively into real estate and infrastructure to offset low returns in traditional markets, raising the risk of asset bubbles, said the Global Public Investor 2015 (GPI 2015) report. The survey of 500 global public-sector institutions across 180 countries found that central banks, on the other hand, continue their purchases of equities.
Total assets under management, including gold, of these 500 public sector asset managers rose 1.8 per cent or US$520 billion in 2014 to US$29.7 trillion. Growth was primarily driven by public pension and sovereign funds. The Official Monetary and Financial Institutions Forum (OMFIF), the global research and advisory group behind the report, estimates that 9.1 per cent or US$2.7 trillion of the total assets held by the 163 central banks, 89 sovereign funds and 248 public pension funds surveyed lie in real estate and infrastructure………………………………………..Full Article: Source

Why Long-Term Investing Can Be Dangerous

Posted on 22 May 2015 by VRS  |  Email |Print

Personally, I agree that, in general, large sovereign funds and pensions should invest for the long-term. There are scores of reasons why and thousands of papers produced by asset managers, think tanks and professors who believe so. Nearly every institutional investor with over US$ 100 billion in assets subscribes to the “long-term investor” philosophy.
Will the Canary Wharf deal be a positive in the long-run for the Qatar Investment Authority (QIA) given the price paid and resources allocated? Incorrect expectations based on a shaky premise can lead to money being stuck in an underperforming asset (this is especially the case with sizable illiquid investments)………………………………………..Full Article: Source

Australia’s Future Fund Acquires €705 Portfolio from Hayfin

Posted on 20 May 2015 by VRS  |  Email |Print

Major backers of Hayfin Capital Management have reduced their stakes in the direct lender after it offloaded a €705 million portfolio of loans to Australian sovereign wealth fund The Future Fund, one of its existing investors.
Hayfin, a €6 billion direct lender backed by TowerBrook Capital Partners, will continue to manage the assets alongside more than €5 billion worth of third-party funds and separate accounts, according to two people familiar with the matter. The firm will use the proceeds to return capital to TowerBrook and co-investors including Canada’s Public Sector Pension Investment Board and the Ontario Municipal Employees Retirement System………………………………………..Full Article: Source

Australia’s Future Fund picks Elementum for reinsurance debut

Posted on 19 May 2015 by VRS  |  Email |Print

Australia’s A$117bn sovereign wealth fund has hired ILS specialist manager Elementum Advisors to manage a reinsurance portfolio on its behalf.
The Future Fund declined to disclose the size of the mandate allocated to Elementum, but said that the portfolio had the flexibility to invest in collateralised reinsurance as well as catastrophe bonds. “We will continue to engage with the (re)insurance sector while remaining cautious about the pricing environment,” a spokesman said………………………………………..Full Article: Source

GIC, CPPIB to acquire Seoul mall for S$348m

Posted on 19 May 2015 by VRS  |  Email |Print

Sovereign wealth fund GIC and Canada Pension Plan Investment Board (CPPIB) will be acquiring the D-Cube retail mall in Seoul in a joint venture for US$263 million (S$348 million). As part of a joint venture partnership, GIC and Canada Pension Plan Investment Board will each own a 50 per cent stake in the mall next to Sindorim Station in Seoul.
In a joint media release on Monday (May 18), GIC and CPPIB said they will each own a 50 per cent stake in the mall following the acquisition from Daesung Industires. D-Cube, which was completed in 2011, is situated next to Sindorim Station, a major transportation hub connecting Seoul with Incheon and other major metropolitan cities near the capital………………………………………..Full Article: Source

Qatar is interested in investment in transport infrastructure, energy and agriculture

Posted on 19 May 2015 by VRS  |  Email |Print

Sheikh Faisal bin Saud Al Thani, Head of Business Development - Qatar Holding at Qatar Investment Authority declared interest in investment in transport infrastructure, energy and agriculture. Representatives of the Holding met with Bulgarian Prime minister Boyko Borisov and Bulgarian ministers who pay an official visit to Doha, the governmental information service announced.
During the talks Qatar state officials reaffirmed their interest in operating of Doha-Varna line. A Qatari delegation is to visit Bulgaria to examine specific opportunities for development of Varna seaport. Qatar also showed keen interest in training and experience exchange with Bulgarian specialist in the field of air traffic management………………………………………..Full Article: Source

Aussies set to buy Pendolino owner

Posted on 18 May 2015 by VRS  |  Email |Print

An Australian pensions giant and Abu Dhabi’s sovereign wealth fund are part of a consortium closing in on a takeover of a third of Britain’s trains. The clutch of international investors, led by Australia’s AMP Capital, is leading the race to buy Angel Trains, which was recently put up for sale by its owners. AMP already owns 25% and has the right to match any offer.
Britain’s three rolling stock companies, or roscos, — Angel, Porterbrook and Eversholt — were formed two decades ago with the privatisation of British Rail. They have attracted huge interest from pension and sovereign wealth funds eager to snap up infrastructure assets with stable earnings………………………………………..Full Article: Source

GIC Invests in Sulekha

Posted on 18 May 2015 by VRS  |  Email |Print

Sulekha.com, India’s leading digital platform for local services, today announced that GIC, the sovereign wealth fund of Singapore, and Norwest Venture Partners, a top-tier global investment firm, have invested $ 28 M into the company. Sulekha.com will use the capital to further expand its platform that connects one of the largest bases of users and local service providers, and invest in technology and branding.
Satya Prabhakar, Founder and CEO of Sulekha.com, said, “Sulekha was founded in Austin as a tiny website serving Indians in US and this investment by GIC and Norwest is a powerful endorsement of the vast potential of the local services opportunity and Sulekha’s ability to prosecute it successfully both within and outside of India………………………………………..Full Article: Source

Cofco Joins With China Wealth Fund to Create Global Grain Trader

Posted on 15 May 2015 by VRS  |  Email |Print

Cofco Corp., China’s largest food company, joined forces with the country’s $650 billion sovereign wealth fund to create a global grain trading house. Cofco and China Investment Corp. set up a joint venture named Cofco International as a “platform for international agriculture investment,” the food company said Thursday in a statement. Cofco owns 80.1 percent and CIC the rest, it said, without giving financial details.
The partnership will help Cofco to integrate the trading businesses it acquired last year, when it snapped up 51 percent stakes in Noble Group Ltd.’s grain arm and the Netherlands’ Nidera BV. The acquisitions, giving Cofco large operations in Latin America and eastern Europe, will allow the state-owned company to compete with the biggest grain suppliers………………………………..Full Article: Source

Sovereign wealth funds increase appetite for longer term investments

Posted on 12 May 2015 by VRS  |  Email |Print

Historically government fixed income has been an asset allocation staple of sovereign wealth funds (SWF). However, these unprecedented, low bond yields have pushed them to reassess their weightings and readjust their portfolios.Patrick Thomson, global head of Sovereigns, JP Morgan Asset Management, looks at the changing asset preferences of SWFs.
Central bank monetary policy across the globe is significantly impacting markets around the world. In the Eurozone alone, more than a quarter (26%) of European government bonds are trading on a negative yield, over half (54%) of Germany Bunds are trading on a negative yield – with some 23% yielding less than the -20 basis points threshold for European Central Bank (ECB) bond buying eligibility……………………………………….Full Article: Source

Bandhan raises funds from Singapore’s GIC

Posted on 12 May 2015 by VRS  |  Email |Print

Bandhan Financial Services has raised Rs 1020 crore equity from International Finance Corporation, Singapore’s sovereign wealth fund GIC and Small Industries Development Bank of India, its chairman and managing director Chandra Shekhar Ghosh told ET Monday.
GIC has invested Rs 640.87 crore while IFC has pumped in Rs 344 crore into Bandhan, India’s first microfinance lender to get an in-principle approval to set up a bank. Sidbi has invested Rs 35 crore afresh. GIC is first time investor in Bandhan while IFC’s shareholding in the company will raised from 10.9%. Ghosh did not divulge the latest shareholding structure. Sidbi is also an existing shareholder………………………………………..Full Article: Source

GIC and CPPIB join deal for Hutchison UK units

Posted on 12 May 2015 by VRS  |  Email |Print

Singapore’s sovereign wealth fund (SWF) GIC Private Limited (GIC) and the Canada Pension Plan Investment Board (CPPIB) led the way in a co-investment worth as much as £3.1 billion (US$4.8 billion) into the UK telecom business of Hutchison Whampoa, controlled by Hong Kong billionaire Li Ka-shing.
GIC and CPPIB agreed to each contribute £1.1 billion to invest in an entity which will be created by merging the businesses of O2 UK and Three UK, two of the country’s major mobile service providers, owned by the Hong Kong-based conglomerate. The combined business will become the number one mobile operator in the UK with nearly 33 million customers, according to a statement by CPPIB. The Canadian pension fund will end up owning an approximate 12% stake in the entity………………………………………..Full Article: Source

GIC set to invest $2.2b in British telcos

Posted on 11 May 2015 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC is set to invest £1.1 billion (S$2.2 billion) in British mobile phone giants O2 and Three. GIC is teaming up with four other institutional investors to acquire one-third of the two telcos - which are poised for a mega merger - in a deal worth £3.1 billion in total.
The seller is Hutchison Whampoa, controlled by Hong Kong tycoon Li Ka Shing. The other institutional investors are the Canada Pension Plan Investment Board, Canadian public pension fund Caisse de depot et placement du Quebec, a subsidiary of the Abu Dhabi Investment Authority and Brazilian investment bank BTG Pactual……………………………………….Full Article: Source

Singapore and Abu Dhabi wealth funds buy into O2 deal

Posted on 11 May 2015 by VRS  |  Email |Print

Hutchison Whampoa, Asian billionaire Li Ka-shing’s acquisitive conglomerate, has revealed that Singapore and Abu Dhabi’s sovereign wealth funds are among investors paying up to £3.1 billion ($6bn) for a third of the Hong Kong company’s soon-to-be-enlarged British mobile operations.
The stake sale is in line with Hutchison’s strategy of using as little debt as possible to pay for acquisitions, which have accelerated this year in Europe. Earlier this year, Hutchison, already owner of British wireless company Three, said it was buying British mobile-phone operator O2 from Spain’s Telefonica for £9.25bn, plus up to £1bn later if the newly combined company meets cashflow targets. The stake sale will reduce Hutchison’s outlay by a third………………………………………..Full Article: Source

Five Investors to Share in Hutchison’s Big Mobile Deal

Posted on 11 May 2015 by VRS  |  Email |Print

Two sovereign-wealth funds, two pension funds and an investment bank will put up as much as $4.7 billion. Hutchison Whampoa, Asian billionaire Li Ka-shing’s acquisitive conglomerate, said Friday that Singapore and Abu Dhabi’s sovereign-wealth funds are among investors paying up to £3.1 billion ($4.7 billion) for a third of the Hong Kong company’s soon-to-be enlarged British cellphone operations.
The stake sale is in line with Hutchison’s strategy of using as little debt as possible to pay for acquisitions, which have accelerated this year in Europe. Earlier this year, Hutchison, already owner of U.K. wireless company Three, said it was buying U.K. mobile-phone operator O2 from Spain’s Telefonica SA for £9.25 billion, plus up to £1 billion later if the newly combined company meets cash-flow targets. The stake sale will reduce Hutchison’s outlay by a third………………………………………..Full Article: Source

Temasek among investors in Chinese travel website Tuniu’s $500m round

Posted on 11 May 2015 by VRS  |  Email |Print

Chinese travel website Tuniu said it sold $500 million worth of new shares to a group of investors led by Nasdaq-listed JD.com, the country’s second largest e-commerce site. JD.com will invest $350 million – purchasing shares at $5.33 each – and the deal will see it become the largest shareholder in the travel website at 27.5 per cent. The other investors in the round include, affiliates of Ctrip, DCM, Hony Capital, Sequoia and Singapore state fund Temasek Holdings.
“As part of the agreements, JD.com Inc. will purchase a total of $350 million newly issued Class A ordinary shares of Tuniu through a combination of $250 million in cash and $100 million in resources as part of the two companies’ jointly announced strategic agreement………………………………………..Full Article: Source

GIC to invest S$2.3 billion to acquire stake in Three and O2 UK

Posted on 08 May 2015 by VRS  |  Email |Print

GIC is one of five institutional investors to take a 33 per cent stake in the combined business of Three and O2 UK for £3.1 billion from parent company Hutchison Whampoa, the Republic’s sovereign wealth fund said on Friday (May 8).
GIC will invest £1.1 billion (S$2.3 billion), but this is conditional on and will occur concurrently with the completion of Three UK’s acquisition of O2 UK and the combination of both businesses, which are subject to European Union regulatory approvals, it said in its press release. The full proceeds of the investments will be used, together with a committed bank facility of £6 billion, to fund the O2 UK acquisition from Telefonica………………………………………..Full Article: Source

Singapore SWF buys into Century

Posted on 08 May 2015 by VRS  |  Email |Print

Century Pacific Food Inc., the Philippines’ largest canned food company and maker of the Century Tuna brand, is taking in a new investor. In a disclosure to the Philippine Stock Exchange, Century Pacific said its parent firm Century Pacific Group Inc. has received an exchange option notice from Arran Investment Pte Ltd., an affiliate of Singaporean sovereign wealth fund GIC Pte Ltd., following an exchangeable loan agreement entered by the two firms in April last year.
GIC, which was set up in 1981 to manage Singapore’s foreign reserves, is among the world’s largest fund management companies with assets under management of over $100 billion. Under the agreement, Arran provided the Century Pacific Group a P3.38-billion loan in which the former has an option to be repaid instead through shares in the canned food company……………………………………….Full Article: Source

EU looking to Asia to spur investment fund

Posted on 08 May 2015 by VRS  |  Email |Print

The European Union is seeking Asian capital for a multi-billion euro investment plan it hopes will create more than a million jobs and revive growth. Through the creation of the European Fund for Strategic Investment, presented in Hong Kong on Thursday during its first roadshow outside Europe, the EU seeks to inject 315 billion euros into a range of long-term projects from broadband infrastructure to green energy.
The plan, expected to win final approval in the European Parliament by July, is already attracting interest from sovereign wealth funds in Asia and in the Gulf, a EU official told Reuters………………………………………..Full Article: Source

GIC said to seek up to $1.3 billion stake in one of Brazil’s biggest hospital operators

Posted on 07 May 2015 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC is in talks to buy a stake worth as much as 3 billion reals (S$1.3 billion) in one of Brazil’s biggest hospital operators Rede D’Or Sao Luiz SA, people with knowledge of the matter said.
GIC may acquire as much as 14 per cent of the hospital operator, in equal shares from the company’s founding Moll family and Grupo BTG Pactual, the people said, asking not to be identified because the information is private. GIC could announce a deal for the stake within a month, the people said………………………………………..Full Article: Source

Singaporean sovereign wealth fund takes ownerhip stake in Century Pacific

Posted on 07 May 2015 by VRS  |  Email |Print

A unit of Singapore’s sovereign wealth fund has exercised its option to convert a loan to Century Pacific Group Inc into shares in its listed subsidiary. In a disclosure to the Philippine Stock Exchange, Century Pacific Food Inc said Arran Investment Private Limited, which is an affiliate of Singapore’s GIC Private Limited, has sent word that it would exercise the option clause in the Exchangeable Loan Agreement signed in April 30, 2014.
That agreement involved Arran providing Century Pacific Group a P3.376 billion loan, which the borrower can repay by converting the principal and interest into 245.5 million shares in its listed tuna canning subsidiary. The exercise of the option would redound to a conversion price of P13.75 a share, equivalent to Century Pacific’s initial public offering (IPO) price………………………………………..Full Article: Source

Temasek holds share in Crompton Greaves

Posted on 07 May 2015 by VRS  |  Email |Print

Law firm Khaitan & Co., advised Temasek International Pte Ltd (Temasek) in relation to the acquisition of 34.37% of Crompton Greaves’ consumer products business from Avantha. Holdings by Advent International and Temasek for aggregate consideration of USD 310 million approximately.
The Firm advised Temasek in relation to structuring the transaction, commenting on the definitive documents related to the transaction and the applications seeking approvals from the RBI and the CCI………………………………………..Full Article: Source

SOFAZ and Italian Strategic Fund Plan to Sign MoU on LT Investments

Posted on 07 May 2015 by VRS  |  Email |Print

State Oil Fund of Azerbaijan (SOFAZ) is near completing a Memorandum of Understanding with the Fondo Strategico Italiano (FSI), also known as the Italian Strategic Fund. The MoU will highlight a number of new long-term investment projects. Fondo Strategico Italiano is keen on partnering with sovereign wealth funds on investments.
The fund has signed a number of agreements with wealth funds such as the Qatar Investment Authority (QIA). The MoU is expected to be signed in September 2015………………………………………..Full Article: Source

Goldman Sachs, Qatar Investment Authority bid for Hanoi’s tallest building

Posted on 07 May 2015 by VRS  |  Email |Print

Keangnam Hanoi Landmark Tower, the highest building in Hanoi, Vietnam, valued at $1 billion, has been reportedly put on sale; interested international investors include, Goldman Sachs and the Qatar Investment Authority (QIA).
The Korea Economic Daily cited sources, saying that both the Goldman Sachs and the QIA have made their respective offers for the acquisition of the Hanoi tower to the New York office of commercial real estate service company Colliers International, the lead manager in the sale of the 72-story building, constructed by Korean firm Keangnam Enterprises………………………………………..Full Article: Source

GIC in talks to buy stake in Brazil’s Rede D’Or for $980 million

Posted on 06 May 2015 by VRS  |  Email |Print

GIC Pte, Singapore’s sovereign wealth fund, is in talks to buy a stake worth as much as 3 billion reais ($980 million) in Brazilian medical-care provider Rede D’Or Sao Luiz SA, people with knowledge of the matter said.
GIC may acquire as much as 14 percent of the hospital operator, in equal shares from the company’s founding Moll family and Grupo BTG Pactual, the people said, asking not to be identified because the information is private. GIC could announce a deal for the stake within a month, the people said………………………………………..Full Article: Source

Temasek among bidders for China’s Postal Savings Bank’s pre-IPO stake

Posted on 06 May 2015 by VRS  |  Email |Print

Singapore state fund Temasek Holdings is among the six bidders who have submitted bids to buy up to 10 per cent stake in China’s state-owned Postal Savings Bank of China (PSBC) for at least $3 billion, a recent report said. The other bidders include French bank BNP Paribas and UBS, international news wire Reuters said in a recent report.
Postal Savings Bank of China (PSBC), which holds about $800 billion in deposits, had approached several investors to offload a minority stake ahead of its mega listing, which could see it raise anywhere between $10 to $25 billion………………………………………..Full Article: Source

SOFAZ to further invest in ruble, lira

Posted on 05 May 2015 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ, will further invest in both the Russian and Turkish currency - respectively the ruble and the lira, despite their devolution. SOFAZ head, Shahmar Movsumov said investing in the Russian ruble and Turkish lira are strategic moves.
“They are long-term moves and do not depend on the value of these currencies,” Movsumov said last week. “Therefore, we will continue to invest in them.” As part of SOFAZ’s investment policy, up to 50 percent of all assets are in USD, up to 35 percent in euros, up to five percent in British pounds, and the remaining 10 percent in other currencies, including the Russian ruble, the Australian dollar, Korean Won and Turkish lira………………………………………..Full Article: Source

Abu Dhabi SWF in $2.4 billion Hong Kong hotel deal

Posted on 05 May 2015 by VRS  |  Email |Print

Sovereign wealth fund (SWF) the Abu Dhabi Investment Authority (ADIA) will pay HK$18.5 billion (US$2.4 billion) for a 50% stake in three Hong Kong hotels, in what is the latest example of a Gulf wealth fund investing into the territory’s real estate market. As part of the deal, ADIA, one of the world’s richest SWFs, will form a 50/50 joint venture (JV) with Hong Kong conglomerate New World Development (NWD) – the current owner of the properties – to which 100% of the hotels’ share capital will be transferred.
The three properties are the Grand Hyatt Hong Kong, the Renaissance Harbour View, and the Hyatt Regency Hong Kong. Going forward, the new JV will seek to pursue other investments in the hospitality industry, a statement issued by NWD said. Founded in 1976, ADIA is the world’s second largest SWF, with approximately US$773 billion in assets, according to data from the Sovereign Wealth Fund Institute………………………………………..Full Article: Source

Abu Dhabi to buy stake in HK hotels in $2.4bn deal

Posted on 04 May 2015 by VRS  |  Email |Print

Abu Dhabi Investment Authority (Adia) has agreed to buy a 50 per cent stake in three Hong Kong hotels from a group led by New World Development in a HK$18.5 billion ($2.4 billion) deal, the sovereign wealth fund’s biggest Asian property investment.
Under the deal, New World will sell its interests in three Hong Kong hotels - Grand Hyatt Hong Kong, Renaissance Harbour View and Hyatt Regency Hong Kong hotel - to a joint venture to be formed by New World and Adia, the Hong Kong company said in a statement on Thursday. New World, which has long planned an IPO of its hotel properties, has instead teamed up with Adia to form a 50-50 joint venture to pursue acquisitions in the hospitality industry, said the Hong Kong company, founded by Hong Kong tycoon Cheng Yu-tung………………………………………..Full Article: Source

Adia takes 50 per cent stake in trio of Hong Kong hotels

Posted on 04 May 2015 by VRS  |  Email |Print

Abu Dhabi Investment Authority (Adia) is checking into some of Asia’s plushest guest suites after the sovereign wealth fund agreed to buy a 50 per cent stake in three leading Hong Kong hotels. Adia has signed a deal with a group led by New World Development, one of Hong Kong’s most powerful property companies, controlled by the billionaire Cheng Yu-tung, to buy into Grand Hyatt Hong Kong, Renaissance Harbour View and the Hyatt Regency Hong Kong.
As part of the HK$18.5 billion (Dh8.76bn) deal, Adia agreed to form a joint venture company with two New World subsidiaries which would look for further acquisitions in the tightly held Hong Kong hotels market. “The joint venture company will be an effective platform to create synergies and to pursue value-enhancing acquisitions in the hospitality sector in the future,” Wong Man-hoi, company secretary for New World, said in a statement to the Hong Kong bourse………………………………………..Full Article: Source

New World Sells Hotels to Abu Dhabi Venture for $2.4 Billion

Posted on 04 May 2015 by VRS  |  Email |Print

New World Development Co., controlled by the family of Hong Kong billionaire Cheng Yu-tung, said it will sell three hotels to a joint venture with Abu Dhabi Investment Authority for HK$18.5 billion ($2.4 billion).
The developer will receive HK$10 billion in cash for the sale, it said in a statement to the Hong Kong stock exchange. A unit of New World will hold 50 percent of the venture, with Abu Dhabi Investment owning the rest, it said. The hotels include the Grand Hyatt in Hong Kong………………………………………..Full Article: Source

ADIA Finally Rewarded in Its Luxury Hotels Hunt

Posted on 04 May 2015 by VRS  |  Email |Print

The Abu Dhabi Investment Authority (ADIA) has paid HK$10 billion ($1.3 billion) to Hong Kong–based hospitality company New World Development to own three of the territory’s prime hotels valued at HK$18.5 billion ($2.4 billion). The joint venture will own the Grand Hyatt Hong Kong, Renaissance Harbour View and Hyatt Regency TST paid at an average of $1.35 million per room — a record for the Asia-Pacific region. ADIA had recently lost out on a portfolio of London hotels including Claridge’s, The Connaught and The Berkeley to the Qatar Investment Authority.
The Abu Dhabi fund also made headlines for its pending litigation with the Norwegian government over a possible reduction of the revenue stream of Gassled, Norway’s undersea pipe network. The investors, which also include the Canada Pension Plan Investment Board, and Allianz Capital Partners acquired a 24.1 percent stake in Gassled from Norway’s Statoil for $3 billion in 2011………………………………………..Full Article: Source

South Korea’s sovereign-wealth fund is bidding to buy a stake in Los Angeles Dodgers

Posted on 30 April 2015 by VRS  |  Email |Print

Efforts by South Korea’s sovereign-wealth fund to buy a minority stake in the Los Angeles Dodgers have helped put the Major League Baseball team’s ownership in play, said people with knowledge of the situation. “A number of organizations have expressed an interest in investing,” said a person close to the Dodgers, adding that “as of this point, none have gone beyond the point of discussion.”
The talks come at a time when private-equity practitioners and sovereign-wealth funds are increasingly interested in owning major-league sports franchises. Lucrative broadcast rights, merchandising opportunities, sponsorship revenue, and prospects to expand the teams’ presence in Asia help drive demand for such deals………………………………………..Full Article: Source

Norway’s sovereign oil fund earns more than government spends

Posted on 30 April 2015 by VRS  |  Email |Print

Norway’s $916bn oil fund on Wednesday trumpeted its best-ever quarterly return, boosted by monetary stimulus in Europe that put a rocket under the region’s stock markets. The Government Pension Fund Global, which invests Norway’s oil wealth, made more money in the first three months of the year than the government spent in the same period — and then some.
The fund returned 5.3 per cent, or NKr401bn ($53bn), in the first quarter, which its manager Norges Bank Investment Management said was its best ever performance, although this was flattered by weakness in the kroner………………………………………..Full Article: Source

Oman fund, Spanish firm to finance Spanish companies abroad

Posted on 30 April 2015 by VRS  |  Email |Print

Oman’s largest sovereign wealth fund and Spain’s Compania Espanola de Financion del Desarollo have agreed to establish a fund, initially 200 million euros ($220 million) in size, to finance Spanish firms, the Omani fund said on Wednesday.
The State General Reserve Fund (SGRF) said it had reached the agreement after talks between the Omani and Spanish governments. The SGRF is estimated to have assets of about $13 billion, according to the Sovereign Wealth Fund Institute, which tracks the industry………………………………………..Full Article: Source

Abu Dhabi invests in top Hong Kong hotels

Posted on 30 April 2015 by VRS  |  Email |Print

A venture backed by the Gulf state is to snap up a clutch of Hong Kong’s top hotels in a deal with conglomerate New World Development for HK$18.5bn, one of the biggest hotels deals to have taken place in Asia.
On Thursday NWD said it and its subsidiaries had struck a deal with a subsidiary of the Abu Dhabi Investment Authority to form a joint venture under which they will co-own the Grand Hyatt Hong Kong, Renaissance Harbour View and Hyatt Regency TST with the Middle Eastern sovereign wealth fund………………………………………..Full Article: Source

New World Sells Hotels to Abu Dhabi Venture for $2.4 Billion

Posted on 30 April 2015 by VRS  |  Email |Print

New World Development Co., controlled by the family of Hong Kong billionaire Cheng Yu-tung, said it will sell three hotels to a joint venture with Abu Dhabi Investment Authority for HK$18.5 billion ($2.4 billion). New World Development will receive HK$10 billion in cash for the sale, the company said in a statement to the Hong Kong stock exchange. A unit of the developer will hold 50 percent of the venture, with Abu Dhabi Investment owning the rest, it said.
The sale follows New World’s previous attempt to spin off its hotel unit in 2013, which sought to raise as much as $1 billion, people with knowledge of the matter said then………………………………………..Full Article: Source

Singapore’s sovereign wealth fund GIC acquires 63.9% stake in Nirlon

Posted on 29 April 2015 by VRS  |  Email |Print

Reco Berry Private Ltd, an affiliate of GIC, Singapore’s sovereign wealth fund, said it is acquiring 63.9 per cent for Rs 1,280 crore in real estate firm Nirlon. The stake is being acquired at Rs 222 per share and is pursuant to the open offer and agreements with shareholders of the company. The company said that acquisition of 28.4 per cent stake under the open offer has been completed. Reco Berry is in the process of acquiring 35.5 per cent under the agreements.
Nirlon was originally a nylon textile yarn and conveyor belt maker. The company turned sick in the 80s and had been moving out of manufacturing business and eventually turned into a real estate player. Its realty assets were essentially surplus land previously housing its manufacturing units. Currently, it owns Nirlon Knowledge Park (NKP), an IT office park located in Mumbai………………………………………..Full Article: Source

Why Qatar Bought Claridge’s

Posted on 28 April 2015 by VRS  |  Email |Print

Never let it be said that Qatar doesn’t like a trophy asset. Where many sovereign wealth funds stay in the background, carefully building balanced portfolios and eschewing the limelight, the Qatar Investment Authority and its subsidiaries like to make a statement. This is nowhere more true than in London, where its landmark assets include Harrods, the Shard and (sort of) Canary Wharf. But is it good business?
The buyer is Constellation Hotels, which is part of the Qatar Holding investment subsidiary of the QIA; its purchase is a 64% stake of Coroin, a luxury hotel group that holds the three hotels……………………………………….Full Article: Source

QIA Hunts for Hotels

Posted on 28 April 2015 by VRS  |  Email |Print

The Qatar Investment Authority made progress on two big London real estate deals this week. Elsewhere, Singapore’s state-owned asset managers continue to target India and Norway made a big investment in U.S. logistics properties.
It’s been a busy month for the Qatar Investment Authority (QIA). Sovereign Wealth Center research suggests that the fund spent some $2.3 billion on shares in Royal Dutch Shell and BG Group following their merger on April 8. Now QIA has turned to augmenting its real estate portfolio………………………………………..Full Article: Source

What’s Behind Qatar’s $2.3 Billion Bet on Shell’s BG Takeover?

Posted on 28 April 2015 by VRS  |  Email |Print

The Qatar Investment Authority amassed major positions in both Royal Dutch Shell and BG Group after the two companies agreed to merge earlier this month. What’s its game? The oil and gas industry is primed for an M&A boom. And on April 8, Royal Dutch Shell announced it was offering to buy Reading, U.K.-based BG Group, the former exploration and production arm of British Gas, in a deal worth British Pound 47 billion ($70.2 billion).
Sovereign wealth funds’ responses to the proposed deal in the week following the announcement were largely ignored by the media. Norges Bank Investment Management , the arm of Norway’s central bank that manages the $861 billion Government Pension Fund Global, added BG shares to its portfolio, which also includes a 5 percent stake in Shell. Qatar Investment Authority bought 67 million shares in Shell (a 2.75 percent stake) and 12 million in BG (a 0.39 percent stake) in the wake of the deal. The total cost? $2.3 billion — big money even for the Qataris………………………………………..Full Article: Source

Qatari Diar plans two new hotels in North Africa

Posted on 28 April 2015 by VRS  |  Email |Print

Major real estate group Qatari Diar, wholly-owned by the Qatari Investment Authority, has partnered with leading global hotel operator Minor Hotel Group (MHG) to develop two new Anantara resorts in North Africa, to open in 2017.
Anantara Tozeur Resort is a new luxury escape being developed by Qatari Diar in the southwest of Tunisia, in the city of Tozeur. This new-build Anantara will offer 93 luxurious guest rooms and villas, including pool villas, a selection of restaurants and bars, meeting and business facilities, kids and teens clubs, a health club and an Anantara Spa………………………………………..Full Article: Source

Abu Dhabi removes Jho Low contact

Posted on 28 April 2015 by VRS  |  Email |Print

The UK-based website Sarawak Report has learnt that Penangite Jho Low’s key contact at Aabar Investments, Abu Dhabi’s sovereign wealth fund, has been removed from the majority of his posts in the Gulf State.
The contact, identified as Khadem al Qubaisi, has stepped down as Chairman of the International Petroleum Investment Company (IPIC), a major sovereign wealth fund, a few days after losing the Chairmanship of Arabtec. He has also lost the chairmanship of Aabar Properties, a subsidiary of Aabar Investments………………………………………..Full Article: Source

Singapore Sovereign Fund, Norwest Venture Partners Invest $ 28 million in Sulekha.com

Posted on 28 April 2015 by VRS  |  Email |Print

GIC, the sovereign wealth fund of Singapore, and Norwest Venture Partners, a global investment firm, have invested $28 million in Sulekha.com, India’s leading digital platform for local services. Sulekha will use the capital to further expand its platform that connects one of the largest bases of users and local service providers, and invest in technology and branding.
“Sulekha was founded in Austin as a tiny website serving Indians in the U.S., and this investment by GIC and Norwest is a powerful endorsement of the vast potential of the local services opportunity and Sulekha’s ability to prosecute it y both within and outside of India,” Satya Prabhakar, founder and CEO of Sulekha.com, said in a press release. (Press Release)

GIC raises stake in Mumbai IT park Nirlon to 63.9% for $90M through open offer

Posted on 24 April 2015 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC has raised its holding in public listed Mumbai IT park firm Nirlon Ltd to 63.92 per cent by acquiring more shares in the open offer for Rs 568.32 crore ($90 million). This completes a rare control-style deal for a sovereign wealth fund in India. GIC had previously struck a deal to buy up to 39.2 per cent stake in the company last December last year. This was conditional upon the acceptance ratio in the open offer.
It had made an open offer to buy 28.4 per cent stake from the public and said if it is able to garner over 21.7 per cent stake through this route, it would buy only 5 per cent stake from the promoters for Rs 100 crore besides 29 per cent stake from two institutional investors for Rs 584 crore at Rs 222 a share each………………………………….Full Article: Source

Khazanah Nasional targets EU markets, new industries for investments

Posted on 24 April 2015 by VRS  |  Email |Print

Sovereign investment firm Khazanah Nasional Bhd will look into European markets, as well as “newer industries” locally to invest this year on. A new region Khazanah Nasional is looking to venture into is the UK and Europe, which it will open up a London office for by the end of this year. The firm already has four international offices in big cities like Beijing, Mumbai, Istanbul and San Francisco.
Managing director Azman Mokhtar said the firm is ready to open an office in London looking at opportunities post the currency crisis.”Previously, we didn’t think we were ready for that market but after the Eurozone crisis, we are ready to open our London office. It will be later in the year,” he said, “That loop of offices is complete for now, we don’t think we need more for the area we want to cover currently.”…………………………………Full Article: Source

Qatari’s take majority stake in luxury London hotel group

Posted on 24 April 2015 by VRS  |  Email |Print

Qatar’s Constellation Hotels buys 64pc stake in the company which owns Claridges, The Berkeley and The Connaught. A Qatari investment vehicle has taken a majority stake in three of London’s most prestigious hotels in a landmark deal.
Constellation Hotels - which is owned by Qatar Holding, the sovereign wealth fund backed by the Qatari royal family - has bought a 64pc stake in Coroin, the holding company which owns the Maybourne Hotel Group, made up of Claridges, The Berkeley and The Connaught………………………………….Full Article: Source

Australian sovereign fund joins Investa scrum

Posted on 23 April 2015 by VRS  |  Email |Print

The more than $109 billion Future Fund has waded into the contest for the Investa Property Group platform. It is highly likely Australia’s sovereign fund will partner with the ASX-listed DEXUS Property Group, sources said. However, the large sovereign funds and institutions have been advised not to enter exclusivity with managers such as DEXUS until the second round.
DEXUS has enlisted more than one capital partner. Sovereign wealth fund Abu Dhabi Investment Authority’s (ADIA) is also part of the consortium, it is understood. A shortlist for the $9 billion Investa Property Group will be drawn up by the end of next week with Morgan Stanley Real Estate Investing – which is exiting its Investa investment – keen to keep up the sale’s momentum……………………………………..Full Article: Source

Temasek to buy Crompton’s consumer electric business

Posted on 23 April 2015 by VRS  |  Email |Print

Advent and Temasek are close to announcing the deal to buy Crompton Consumer Electricals business for a total enterprise value of Rs 6,600 cr, sources with direct knowledge share. In the first leg of the transaction, Advent will lead the acquisition to buy 34.37 per cent stake from the Crompton Greaves promoters.
Temasek and Advent together will make an open offer to buy 26 per cent stake in the demerged consumer business. Deal is expected to value per share of Crompton Consumer Electricals business at Rs 94/share. Eventually, Advent may hold 40 per cent and Temasek over 20 per cent in the company, sources said……………………………………..Full Article: Source

Norway SWF is primed to become Africa’s biggest investor

Posted on 22 April 2015 by VRS  |  Email |Print

World’s biggest Sovereign Wealth Fund (SWF), Norway’s Government Pension Fund Global (GPFG), last year added five African states to the number of countries it approves as marketplaces for trading in equities. It is keen to take advantage of the pace of economic growth across Africa to garner profitable returns on equity investments.
The Norwegian fund’s investment in Africa has now been extended to Kenya, Tunisia, Ghana, Mauritius and Nigeria. Its investments in Nigeria, as at the end of 2014 was 497 million kroner ($63 million), which included stocks in companies listed on the Nigerian Stock Exchange (NSE). The fund’s investment is highest in Zenith Bank, Nigeria’s largest bank, at 23.5 percent. This is followed by another lender, Guaranty Trust Bank at 21 percent. Access Bank has so far received the least investment from the wealth fund (3.2 percent)…………………………………..Full Article: Source

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