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POSCO to Accelerate Entry to Middle East Partnering with Saudi Arabia’s Sovereign Wealth Fund

Posted on 06 March 2015 by VRS  |  Email |Print

POSCO is to forge a comprehensive partnership with Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, in many areas including the construction and automobile industries. POSCO Chairman Kwon Oh-joon, who has been a member of an economic mission accompanying President Park Geun-hye on her trip to the four Middle Eastern countries, met with PIF Secretary General Abdulrahman Almofadhi and signed a Memorandum of Understanding (MOU) on March 4.
Under the agreement, the PIF will invest more than US$1 billion (1.1 trillion won) into POSCO Engineering & Construction, which possess construction technologies for new cities, railways, and infrastructure. It will also consider establishing a joint venture with POSCO to proceed with joint projects in the social overhead capital (SOC) sector and automobiles………………………………………..Full Article: Source

Dubai and South Korean sovereign wealth funds in landmark cooperation deal

Posted on 05 March 2015 by VRS  |  Email |Print

Investment Corporation of Dubai (ICD), the government investment group, has struck a landmark deal with the sovereign wealth fund of South Korea to cooperate on financial opportunities around the world. The deal – signed in Dubai – involves ICD and Korea Investment Corporation (KIC) developing a platform that “facilitates communication between the two organisations, while empowering them to jointly explore investment opportunities in the UAE, South Korea and other countries”, ICD said.
ICD holds valuable stakes in assets such as Emirates Airline, Emirates NBD, and the Dubai Electricity and Water Authority. It has assets valued at US$160 billion, according to a bond prospectus issued last year………………………………………..Full Article: Source

Exec reveals how Brookfield, Qatar conquered Canary Wharf

Posted on 05 March 2015 by VRS  |  Email |Print

Brookfield Property Partners’ chief executive has lifted the lid on the three-month long battle for Canary Wharf, which culminated in the largest UK property deal for a decade. Canada’s Brookfield and the Qatar Investment Authority (QIA), the state’s sovereign wealth fund, first launched their £2.6bn bid for Songbird, the estate’s owner, in November.
But, if it was be successful, the pair would need to get one of Songbird’s three major shareholders on board. This meant they needed China Investment Corporation, Morgan Stanley or New York billionaire Simon Glick. “Going into this, we knew China Investment Corporation and Morgan Stanley would be sellers. Simon Glick was a bit of an unknown,” Ric Clark, chief executive of Brookfield, told the Wall Street Journal………………………………………..Full Article: Source

Saudi Arabia sovereign fund to invest in POSCO E&C

Posted on 05 March 2015 by VRS  |  Email |Print

Public Investment Fund, Saudi Arabia’s sovereign wealth fund, is forecast to take a big stake in POSCO Engineering & Construction. “The deal is included in a comprehensive partnership agreed between PIF and POSCO,’’ a company official said on Wednesday.
Both parties signed a memorandum of understanding to form a joint partnership at a meeting on the sidelines of President Park Geun-hye’s visit to Saudi Arabia with leaders of South Korean businesses. The deal is valued at around 1.5 trillion won ($1.36 billion), as there is speculation that the steelmaker is seeking to sell a 40 percent stake in its construction arm to raise funds to improve its financial health, capital market watchers said………………………………………..Full Article: Source

JTC, Temasek to merge urban solutions units

Posted on 05 March 2015 by VRS  |  Email |Print

JTC Corporation, the Singapore government agency responsible for the development of industrial infrastructure, and Singapore investment company Temasek have entered into an agreement to merge four of their operating subsidiaries into an integrated platform for sustainable urban development.
Subject to relevant regulatory approvals, the merger between Ascendas Pte Ltd, Singbridge Group Pte Ltd, Jurong International Holdings Pte Ltd (JIH), and Surbana International Consultants Holdings Pte Ltd is expected to be completed by the first half of 2015. JTC and Temasek began exclusive talks to explore the merger in September 2014. The merged group will be jointly owned by JTC and Temasek through a 49:51 partnership………………………………………..Full Article: Source

SWC Talks to Panama’s SWF on New Equity Strategies

Posted on 05 March 2015 by VRS  |  Email |Print

The Panama Canal is a renowned feat of engineering — but by the early 2000s its century-old infrastructure was creaky, and it was struggling to meet demand. In 2006, the Panamanian government started a project to renovate the canal and double capacity. Anticipating a big increase in revenue, Panama in 2012 created a new sovereign wealth fund, the Fondo de Ahorro de Panam’a (FAP) , to collect and manage future proceeds from the widened waterway.
Abdiel Santiago, technical secretary of the FAP, is responsible for day-to-day management of the fund. FAP inherited a $1.3 billion portfolio of cash and government bonds from an earlier investment vehicle, and Santiago is implementing a more ambitious strategy that will add stocks and corporate bonds to the fund’s portfolio. He spoke to the Sovereign Wealth Center’s David Evans about how FAP is sifting pricey markets for opportunities amid record low yields. The transcript is edited for grammar, space and context………………………………………..Full Article: Source

Norway Pushed to Review Oversight of World’s Biggest Wealth Fund

Posted on 04 March 2015 by VRS  |  Email |Print

Norway’s $880 billion sovereign wealth fund is facing new calls for tighter oversight as the government prepares its annual strategy document. Labor, Norway’s largest political party, wants to use the process to reassess the supervision framework as the fund’s rapid growth and expanding investment universe may require “more comprehensive management,” said Torstein Tvedt Solberg, who sits on parliament’s Finance Committee.
Tvedt Solberg said the fund’s ambitions to become a more active investor and expand into new assets add pressure to the oversight structure. “There’s a need to do a thorough review of this system,” he said……………………………………….Full Article: Source

Dubai to build $1bn financial zone development

Posted on 04 March 2015 by VRS  |  Email |Print

Dubai’s sovereign wealth fund is to build a $1bn development in the heart of the emirate’s financial district, the first new construction project there since the real estate crash of 2008. The development, next to the core cluster of Dubai International Financial Centre buildings, is also the first project by a joint venture between Investment Corporation of Dubai and Brookfield, the Canadian asset manager.
ICD Brookfield Place is a vote of confidence from the government in continued growth in its financial centre amid increasing competition from neighbouring hubs, including a new free zone in the richer emirate of Abu Dhabi……………………………………….Full Article: Source

MAS turnaround takes off with Khazanah’s $603m boost

Posted on 04 March 2015 by VRS  |  Email |Print

Sovereign wealth fund Khazanah Nasional said yesterday it will kick-start the immensely challenging task of turning around flag carrier Malaysia Airlines (MAS) with a RM1.6 billion (S$603 million) injection and cost savings through contract reviews.
MAS has been badly hurt financially after the disappearance of Flight MH370 on March 8 last year, and the shooting down of MH17 over Ukraine four months later. Both disasters prompted some travellers to avoid MAS. Its last reported quarter (July to September last year) showed planes were 11.3 per cent less full compared to the number a year ago……………………………………….Full Article: Source

Temasek faces new normal as Singapore eyes funds

Posted on 04 March 2015 by VRS  |  Email |Print

Temasek Holdings’s long-term investing strategy will have to include more short-term and liquid assets after the Government opened up the option to draw more funds from the state-owned investment company.
Singapore’s Government is “now ready” to include part of Temasek’s capital gains in its annual budget as the country spends more on its subway network, airport, education and social security to support an ageing population, Finance Minister Tharman Shanmugaratnam said in his Budget Statement on Feb 23……………………………………….Full Article: Source

Kuwait sovereign fund turning its focus from US to EU investments

Posted on 03 March 2015 by VRS  |  Email |Print

The Kuwait Investment Office (KIO), the London branch of Kuwait’s sovereign wealth fund, is gradually cutting its exposure to the United States in favour of Europe, its chief executive said. The KIO a unit of the Kuwait Investment Authority (KIA), is boosting its investments in Europe because of the bond-buying programme in euro zone countries known as quantitative easing (QE), which is expected to flood the 19-member currency union with liquidity and inflate asset prices.
The KIA manages US$548 billion in assets and is the world’s sixth largest sovereign wealth fund, according to the Sovereign Wealth Fund Institute. “This year we are starting to implement an overweight for the European markets and gradually decreasing our overweight to the US markets,” said Osama Al Ayoub………………………………………..Full Article: Source

Kuwait Buys European Stocks Versus U.S. on ECB Easing

Posted on 03 March 2015 by VRS  |  Email |Print

The Kuwait Investment Office, part of the Gulf state’s sovereign wealth fund, will increase its allocation to European equities as it shifts away from U.S. stocks. The KIO is reducing its overweight allocation to U.S. equities, that it has held for the past seven years, Osama Alayoub, chief executive officer of the fund, said.
It will increase its allocation to European equities in response to the European Central Bank’s bond buying program, he said. “After seven years of being overweight U.S. equities this year we started to implement a strategy of going overweight on European equities and decreasing the U.S. exposure,” he said. “There will be a chase in Europe for yielding assets and we think assets will inflate.”……………………………………….Full Article: Source

Abu Dhabi fund kicks off bidding war for London luxury hotels

Posted on 03 March 2015 by VRS  |  Email |Print

The Abu Dhabi Investment Authority has made a £1.6bn takeover offer for a trio of London’s luxury hotels, in a move that could resolve an acrimonious ownership dispute.The bid from the Middle Eastern sovereign wealth fund for London landmark Claridge’s, along with The Connaught and The Berkeley, values the hotels at £3m per key — one of the highest sums ever for a hotel, according to a source familiar with the situation.
Shareholders in the hotels have subsequently received two other approaches from asset-rich investors in two other Middle Eastern countries, according to sources familiar with the situation. The hotels are owned by Irish property entrepreneurs Derek Quinlan and Paddy McKillen through the Maybourne Hotel Group………………………………………..Full Article: Source

Exactly where sovereign wealth funds are stashing their cash

Posted on 03 March 2015 by VRS  |  Email |Print

The world’s premier state-owned investment decision money have been investing profits from oil and fuel reserves to economical markets to aid diversify absent from their reliance on commodities.
True estate has turn into a beloved among the some of the world’s biggest sovereign prosperity funds these as Norway’s Government Pension Fund World-wide (GPFG), which now has close to $893 billion under administration in accordance to Sovereign Wealth Fund Institute and the Qatar Investment Authority, but resources are now progressively eyeing choice assets to supply new revenue streams and wide range for their portfolios………………………………………..Full Article: Source

Singapore investors complete $8.1 billion IndCor acquisition

Posted on 02 March 2015 by VRS  |  Email |Print

Global Logistic Properties and Singapore’s sovereign wealth fund completed their acquisition of IndCor Properties, the Chicago-based industrial landlord valued at $8.1 billion. Singapore-based Global Logistic said it acquired 55 percent of the IndCor portfolio and plans hold a 10 percent stake after syndicating the investment, while GIC, the sovereign wealth fund, owns 45 percent.
They bought the 117 million square-foot portfolio from New York-based private-equity fund Blackstone Group, which had considered selling shares of IndCor in an initial public offering. The portfolio, which spans 26 U.S. markets, including Chicago, is 91 percent leased, according to Global Logistic………………………………………..Full Article: Source

Qatar sovereign fund buys full control of €2bn Milan Porta Nuova

Posted on 02 March 2015 by VRS  |  Email |Print

Nearly two year after it bought an initial minority stake, sovereign wealth fund Qatar Investment Authority is taking full control of the giant €2bn-plus Porta Nuova development in the heart of Milan from a consortium of investors led by Hines Italia.
Hines Italia CEO Manfredi Catella gave no price details in a news conference Friday in Milan, but reports have put the value of the massive mixed-use development at over €2bn. QIA made the acquisition through its wholly-owned real estate unit Qatar Holding………………………………………..Full Article: Source

Angolan sovereign wealth fund seeks mine, timber investments

Posted on 02 March 2015 by VRS  |  Email |Print

Angola’s $5 billion sovereign wealth fund, Fundo Soberano de Angola, is seeking investments in mining, timber, health and agriculture in order to diversify its asset base and increase returns. “A large portion of the portfolio is invested in international securities,” Jose Filomeno dos Santos, the fund’s chairman, said in an interview with Bloomberg Television on Thursday.
“We are looking at several opportunities. We wouldn’t want to give away these opportunities by disclosing what they are before they are completely settled.” The fund, which is managed by Quantum Global Investment Management, was established to invest surplus state funds and promote development in the country. It has allocated $1.1 billion toward investing in toll roads, ports and other infrastructure projects and $500 million toward hotels. It also plans to spend about $250 million on agriculture projects………………………………………..Full Article: Source

SOFAZ to expand currency basket

Posted on 02 March 2015 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ which is in charge of accumulating and managing the country’s oil and gas revenues, keeps on agenda the inclusion of Chinese yuan in the Fond’s currency basket. SOFAZ head Shahmar Movsumov told Trend that SOFAZ’s all assets, including the investment portfolio, are in foreign currency.
“SOFAZ’s assets are in US dollars, euros, British pounds and other currency for diversification,” he said. “Taking into account that the assets in foreign currency impact the balance sheet in manat, the fluctuations in foreign currency exchange rates versus the manat lead to the exchange rate difference.”……………………………………….Full Article: Source

Where sovereign wealth funds are stashing their cash

Posted on 02 March 2015 by VRS  |  Email |Print

The world’s largest state-owned investment funds have been investing income from oil and gas reserves to financial markets to help diversify away from their reliance on commodities.
Real estate has become a favorite among some of the world’s largest sovereign wealth funds such as Norway’s Government Pension Fund Global (GPFG), which now has around $893 billion under management according to Sovereign Wealth Fund Institute and the Qatar Investment Authority, but funds are now increasingly eyeing alternative assets to provide new income streams and variety for their portfolios. Here we take a look at where state-backed funds are putting their cash to work over the last few months………………………………………..Full Article: Source

Angola’s Sovereign Wealth Fund Targets Mine, Timber Investments

Posted on 27 February 2015 by VRS  |  Email |Print

Angola’s $5 billion sovereign wealth fund is seeking investments in mining, timber, health and agriculture as it seeks to diversify its asset base and increase returns. “A large portion of the portfolio is invested in international securities,” Jose Filomeno dos Santos, the fund’s chairman, said in an interview with Bloomberg Television in Cape Town on Thursday.
“We are looking at several opportunities. We wouldn’t want to give away these opportunities by disclosing what they are before they are completely settled,” he said.The fund, which is managed by Zug, Switzerland-based Quantum Global Investment Management Ltd., was established to invest surplus state funds and promote development in Africa’s largest crude oil producer after Nigeria………………………………………..Full Article: Source

1MDB: Malaysia’s Banking System and Sovereign Rating at Stake

Posted on 26 February 2015 by VRS  |  Email |Print

The Malaysian ringgit declined by about 12 per cent against the US Dollar between September last year and February 10 this year. On February 18, when 1MDB announced its plan to break up its assets and wind down, the ringgit rose 0.2 per cent. The reason for the positive response was because the move will subsequently reduce its US$11.6 billion (RM42 billion) debt.
1MDB said it would make no new investments or take on new projects and stop borrowing money unnecessarily to refinance current debts. It also said it might sell assets and land development rights and enter into profit sharing joint ventures. A few days earlier, 1MDB settled a RM2 billion (US$550 million) loan it owed local banks, one of which was Maybank. The fund had three times requested and been granted extensions on repayment deadlines for the loan………………………………………..Full Article: Source

Iran to spend up to $4.8 billion from sovereign fund on oil development

Posted on 25 February 2015 by VRS  |  Email |Print

Iran will withdraw up to $4.8 billion from its sovereign wealth fund to spend on developing its oil and gas fields next fiscal year under a proposal approved by parliament on Tuesday. The decision to dip into the National Development Fund underlines the heavy financial pressure which Iran faces from low oil prices and international economic sanctions over its disputed nuclear program.
The hard currency allocation, which will supplement other budgetary allocations for the sector, also shows the large sums which Iran needs to spend to modernize its ageing oil fields and crumbling energy infrastructure………………………………………..Full Article: Source

Samruk Kazyna Eyeing Credit Amid Falling Oil

Posted on 24 February 2015 by VRS  |  Email |Print

Samruk-Kazyna, the sovereign wealth fund of the Republic of Kazakhstan issued a statement Friday saying it could borrow up to $2.5 billion this year, either locally or abroad, to ease the debt it holds on its oil assets, which have been hit by the crude prices’ slump, Raushan Nurshayeva, Mariya Gordeyeva and Dmitry Solovyov write for Reuters..
“If conditions on external markets are attractive enough for us, we will tap into foreign markets, although right now, we see that the situation in the internal market is more favourable for us to borrow,” Samruk-Kazyna JSC Chairman, Umirzak Shukeyev said to a press briefing, according to Reuters………………………………………..Full Article: Source

Malaysia’s teetering state investment fund plagued by scandal

Posted on 24 February 2015 by VRS  |  Email |Print

By meeting a repayment deadline for the first time in months, Malaysia’s troubled sovereign wealth fund, 1Malaysia Development Berhad, seems to have staved off a debt crisis that threatened the country’s entire banking system. Reports in Kuala Lumpur say Malaysian billionaire Ananda Krishnan came up with the $693 million that the fund, known as 1MDB, was due to repay by February 18 to the country’s largest bank, Malayan Banking Bhd, and a smaller financial house, RHB Capital Bhd.
While the payment appears to have given 1MDB some breathing space after the fund repeatedly failed to meet debt repayment deadlines, it has done nothing to remove questions about the $14.5 billion in debts the fund has accumulated since its founding in 2009………………………………………..Full Article: Source

1MDB belongs to the people, says veteran journalist

Posted on 20 February 2015 by VRS  |  Email |Print

1MDB belongs to the people, said veteran journalist Datuk A Kadir Jasin, who argued that the troubled sovereign wealth fund cannot hide behind a technicality to justify its secret business dealings.
The former New Straits Times (NST) group editor-in-chief said 1MDB was a government-owned company that is answerable to the people and so far, many of its replies to issues raised by politicians and the media were inadequate. “1MDB is more than a listed company. It is a government-owned company and is, therefore, answerable to the people,” Kadir wrote in his latest blog posting……………………………………….Full Article: Source

Five charts that explain the world’s wealth distribution

Posted on 19 February 2015 by VRS  |  Email |Print

Sovereign wealth funds have been important participants in financial markets over the past decade but as the charts below show, the fortunes of most sovereign wealth funds are tied to oil. For instance, the biggest sovereign wealth fund, Norway’s Government Pension Fund Global (formerly the Government Petroleum Fund) derives its funding from profits generated by the country’s petroleum sector. Most other large sovereign wealth funds are also financed by oil profits.
If oil prices remain low for quite some time to come, it will hit these funds hard. The only exception to oil-based sovereign wealth funds are the Chinese funds, which have grown in size and influence over the past few years………………………………………..Full Article: Source

ICT Ministry, SOFAZ postpone financing of Fiber to Home project

Posted on 19 February 2015 by VRS  |  Email |Print

Ministry of Communications and High-Tech and the State Oil Fund of Azerbaijan (SOFAZ) postponed the financing of Fiber to Home project (”Optics in house”), providing for maintenance of broadband Internet throughout the country.
As part of the Caspian-European Club (CEIBC) meeting which was held in Baku, the Minister of Communications and High Technologies Ali Abbasov told reporters that the funding for the project by the SOFAR is postponed for the period after 2016, 1news.az reports. At the same time, he noted that new sources of funding for the project are found………………………………………..Full Article: Source

Azerbaijan starts talks with world’s leader banks on funding fiber to home program

Posted on 19 February 2015 by VRS  |  Email |Print

The Ministry of Communications & High Technologies of Azerbaijan (RYTN) is trying to save the national program of fiber-optic network development - fiber to home. At a meeting in the Caspian-European Club (CEIBC) Communications Minister Ali Abbasov has stated that negotiations with international banks about financing for the program realization have been launched.
Earlier, the State Oil Fund of Azerbaijan (SOFAZ) undertook the obligation to allocate $100 million for the program, but the funding has not yet been opened. The total cost of the program to be implemented for 3 years is estimated at EUR 500 million………………………………………..Full Article: Source

1MDB-PetroSaudi deal includes repaying US$700 million debt

Posted on 19 February 2015 by VRS  |  Email |Print

Online news portal Sarawak Report has published a 26-page document, revealing sovereign fund 1Malaysia Development Berhad (1MDB) had paid US$1 billion of public funds into a shady venture with Petrosaudi International, despite its lack of a tangible track record.
“What the document reveals is that the prime minister and his advisors at 1MDB paid USD1 billion of borrowed public money into a venture that already carried a USD700 million debt in the form of a loan from PetroSaudi’s parent company to the subsidiary that was entering into the joint venture, PetroSaudi Holdings (Caymans) Limited,” it said in its report………………………………………..Full Article: Source

Saudi Arabia’s oil pain could become local SMSFs’ gain

Posted on 19 February 2015 by VRS  |  Email |Print

The drive to have self-managed funds and local communities become major funders of future infrastructure projects is gathering momentum. At the same time, there is a real chance that low oil prices will change the global infrastructure game. David Murray, the chairman of the Financial System Inquiry, along with many others, is watching closely developments in Saudi Arabia where the sovereign wealth fund has been a major investor in global infrastructure projects.
The Saudis continue to make big profits from the current oil price because of their low extraction costs but they have set up a society that requires a $US75 a barrel price to fund the country. That means that very soon the Saudi’s sovereign wealth fund will need to sell assets to cover the shortfall. At the same time, they will slash their support for new projects………………………………………..Full Article: Source

How will the oil crash affect Norway?

Posted on 18 February 2015 by VRS  |  Email |Print

Most of the surplus is due to the trade balance rather than the income earned from the assets held abroad by Norway’s sovereign wealth fund. The fund produces a large cash flow in absolute terms, but those receipts are far smaller than the export earnings from oil and gas. At the current oil price of about 400 krone per barrel, the government no longer runs a budget surplus and can’t add to the sovereign fund’s holdings: “measured as a share of GDP, the GPFG may have already reached the peak.”
If oil prices don’t rebound and the sovereign fund continues to earn around 3 per cent in real terms each year, Olsen thinks fiscal policy will have to be tightened significantly to offset the decline in petroleum revenues………………………………………..Full Article: Source

Temasek-controlled NOL sells $1.2b APL

Posted on 18 February 2015 by VRS  |  Email |Print

Neptune Orient Lines Ltd. is selling its profitable logistics business to a Japanese logistics-service provider for $1.2 billion, as the Singaporean firm narrows its focus on its struggling container-shipping business.
Neptune Orient Lines, or NOL, which is 65% owned by Singapore state-investment company Temasek Holdings Pte. Ltd., said it has agreed to sell APL Logistics Ltd. to Kintetsu World Express Inc., a company involved in air and ocean freight forwarding………………………………………..Full Article: Source

Khazanah signs up luxury hotel firm

Posted on 18 February 2015 by VRS  |  Email |Print

Khazanah Nasional Bhd unit Destination Resorts and Hotels Sdn Bhd (DRH) is set to venture into another luxury hotel development here, tying up with Thailand-based Minor Hotel Group. The two parties inked an agreement last week to set up the first Anantara luxury resort in Malaysia, at a location yet to be decided.
Minor Hotel chairman William Heinecke said in a statement that the Thai firm may open more than one Anantara hotel in Malaysia. “We believe there is a vast potential for growth in the tourism sector in this beautiful country.” DRH is now undertaking the development of Desaru Coast, the region’s first integrated destination resort located at the south eastern Johor coastline………………………………………..Full Article: Source

SOFAZ and Oil price

Posted on 18 February 2015 by VRS  |  Email |Print

Azerbaijan produced in 2014 some 41.9 million metric tons of oil and gas condensate as compared to 43.1 million metric tons of oil and gas condensate, produced in 2013. The revenues of Azerbaijan’s State Oil Fund (SOFAZ) in 2014 stood at 12,731 million AZN, expenses amounted to 10,117.2 million AZN.
SOFAZ said that as of Jan. 1, 2015, its assets increased by 3.42 percent compared with early 2014 ($35,877.5 million), and stood at $37,104.1 million.The main purposes of SOFAZ are the accumulation of funds and the placement of these fund’s assets abroad to minimize negative impact on the economy, and prevention of the “Dutch disease”………………………………………..Full Article: Source

ADIA Said to Oppose L&R in Bidding for Former UniCredit Milan HQ

Posted on 17 February 2015 by VRS  |  Email |Print

Abu Dhabi Investment Authority, the world’s second-biggest sovereign wealth fund, and London & Regional Properties Ltd. have bid for the former headquarters of UniCredit SpA in Milan, according to two people familiar with the matter.
Offers were between 280 million euros ($319 million) and 320 million euros, said the people, who asked not to be identified because the matter is private. ADIA is bidding with local partner Hines Italia SpA against U.K.-based London & Regional which is working with Milan-based real estate manager Prelios SpA, the people said………………………………………..Full Article: Source

Test for non-oil economy

Posted on 17 February 2015 by VRS  |  Email |Print

Oil prices have crashed from over $100 to sub-$60 a barrel in just five months. While this is good news for consumer countries, it also means only half the revenue for the energy producers, especially the Gulf Cooperation Council (GCC) countries. Hydrocarbon incomes are set to reduce from $743 billion in 2012 to about $410 billion in 2015. The bloc may, therefore, record a current account deficit for the first time since the late 1990s.
A massive sovereign wealth fund and billions in a ‘future generations fund’ means Kuwait plans to spend $155 billion on projects over the next five years despite the oil price plunge. And, Qatar’s infrastructure projects pipeline is set to soar with $30 billion worth of new project deals in 2015………………………………………..Full Article: Source

Singapore’s Temasek, JTC agree to merge 4 real estate subsidiaries

Posted on 17 February 2015 by VRS  |  Email |Print

Singapore state investor Temasek Holdings and JTC Corp, a government agency for infrastructure development, agreed to combine four of their real estate and urban planning units, to capitalise better on rapid urbanisation in emerging markets.
The merged group’s value would be worth about S$5 billion ($3.7 billion) based on the underlying entities, the two firms said. JTC’s Ascendas Pte and JURONG International Holdings Pte Ltd (JIH) will combine with Temasek’s Surbana International Consultants Holdings and Singbridge Group. The merger is expected to be completed within the first half of this year………………………………………..Full Article: Source

Temasek, JTC to merge units to create a S$5b entity

Posted on 17 February 2015 by VRS  |  Email |Print

Investment giant Temasek Holdings and industrial developer JTC Corp yesterday said they had entered into an agreement to merge four of their operating subsidiaries into a mega-entity worth about S$5 billion to tap opportunities from rapid urbanisation across Asia.
Plans for the merger, a bid to build scale and capacity to take on urban solutions and infrastructure projects in Asia and other markets, were first announced last September. Besides the estimated value revealed yesterday, more details about the new corporate structure were also unveiled………………………………………..Full Article: Source

China’s Silk Road dream falls into place with US$40b fund

Posted on 17 February 2015 by VRS  |  Email |Print

Beijing has launched its US$40 billion Silk Road infrastructure fund along the lines of a long-term private equity venture to boost businesses in countries and regions along the route, the central bank governor said. The announcement serves as a prelude to the publication of a blueprint that sheds light on the country’s ambitions to create the New Silk Road economic belt and the 21st-century maritime Silk Road.
The fund’s investors included China’s foreign-exchange reserves, Export-Import Bank of China, China Development Bank and the country’s sovereign wealth fund, the PBOC said………………………………………..Full Article: Source

1MDB says no Jho Low connections to company

Posted on 16 February 2015 by VRS  |  Email |Print

The Penang-born financier and businessman Jho Low has no connections to government investment company 1Malaysia Development Bhd, its chief executive told Mingguan Malaysia. Arul Kanda Kandasamy, in his first major newspaper interview since taking over as 1MDB boss, denied a front-page report in the New York Times last week which had linked Jho Low (Low Taek Jho) with 1MDB.
Jho Low is reported to have been instrumental in helping set up 1MDB’s forerunner, the Terengganu Investment Authority, and bringing in Middle Eastern investments through his high-placed connections………………………………………..Full Article: Source

World’s biggest wealth fund has peaked as oil sinks, Norway says

Posted on 16 February 2015 by VRS  |  Email |Print

The world’s largest sovereign wealth fund has reached its peak amid a collapse in oil prices, according to the governor of Norway’s central bank. The development means western Europe’s biggest crude producer needs to get used to lower revenue from its petroleum industry, Governor Oeystein Olsen said in the text of a speech delivered in Oslo on Thursday.
“At an oil price of around US$60 per barrel, transfers to” the wealth fund “may come to a halt,” he said. As head of the central bank, Olsen oversees Norway’s US$860 billion Government Pension Fund Global………………………………………..Full Article: Source

Temasek unit gives local firm a shot in the arm

Posted on 13 February 2015 by VRS  |  Email |Print

A unit of Temasek Holdings has invested an undisclosed amount in local construction firm Deluge Fire Protection to allow it to expand further overseas. The capital injection by Heliconia, which focuses on helping local small and medium-sized enterprises, will underpin the firm’s expansion into Indonesia and the Philippines amid rapid urbanisation across the region.
The company has already moved abroad with offices in Malaysia, Myanmar, Thailand and Vietnam, along with a pre-fabrication factory in Johor. Deluge managing director Vincent Cheo said the investment could help the firm double its overseas revenue in the next three to five years……………………………………….Full Article: Source

World’s Biggest Wealth Fund Has Peaked as Oil Sinks, Norway Says

Posted on 13 February 2015 by VRS  |  Email |Print

The world’s largest sovereign wealth fund has reached its peak amid a collapse in oil prices, according to the governor of Norway’s central bank. The development means western Europe’s biggest crude producer needs to get used to lower revenue from its petroleum industry, Governor Oeystein Olsen said in the text of a speech delivered in Oslo on Thursday.
“At an oil price of around $60 per barrel, transfers to” the wealth fund “may come to a halt,” he said. As head of the central bank, Olsen oversees Norway’s $860 billion Government Pension Fund Global………………………………………..Full Article: Source

Abu Dhabi Santiago Bernabeu: Oiling the wheels of footie

Posted on 13 February 2015 by VRS  |  Email |Print

The news that Abu Dhabi’s International Petroleum Investment Company has secured naming rights to Real Madrid’s home ground – turning it into the Abu Dhabi Santiago Bernabeu – represents an interesting branding exercise. Sovereign wealth funds rarely seek brand recognition: usually quite the reverse.
IPIC’s venture puts us in mind of another Abu Dhabi sovereign wealth fund’s brief engagement with international football, when the Abu Dhabi Investment Authority (Adia)’s shareholding in Manchester United reached a level where it had to be disclosed, back in 1998. Clearly, there was nothing wrong with that as an investment, but Adia reportedly exited it because of the unwelcome attention it was bringing, to the point where disgruntled fans would phone up the sovereign wealth fund if their team lost at the weekend………………………………………..Full Article: Source

Carlyle Group sees rise of sovereign wealth fund investment, decline in pensions

Posted on 12 February 2015 by VRS  |  Email |Print

Sovereign wealth funds are “a gigantic source of new investment” that are elbowing aside public pension funds in the private equity space, Carlyle Group co-CEO David Rubenstein said Wednesday. Such state-controlled funds increased to 37 percent of capital commitments at Carlyle last year, up from 17 percent a year earlier, Rubenstein said.
“I suspect that will continue. At the same time public pension funds are going down, relatively speaking. It was 28 percent; now it’s about 18 percent,” Rubenstein said during an investor conference call to announce the District-based firm’s 2014 financial results………………………………………..Full Article: Source

Credit Investors Spurn Oil Sovereigns

Posted on 12 February 2015 by VRS  |  Email |Print

As the oil tide recedes, oil-exporting sovereign entities have been treated with increasingly bearish sentiment by credit investors. Oil has seen its price halve since the end of July last year, from around $100 per barrel to around $50 today (WTI), compelling net exporters to rethink their budgets.
Large sovereign wealth funds look to have buoyed Norway and Saudi Arabia as their CDS spread sits largely unmoved………………………………………..Full Article: Source

Why Norway is not panicking about the oil price collapse

Posted on 11 February 2015 by VRS  |  Email |Print

The big advantage that Norway has is the US$860bn (£565bn) Norwegian Government Pension Fund Global into which the oil money is deposited. Intended as an investment for future generations, it is the largest sovereign wealth fund in the world.
Norway owns an estimated 1% of global stocks and is considered to be the largest state owner of European stocks. For a country with a population just over 5m, this is a position of remarkable economic strength – thanks primarily to petroleum. The revenue of the sector is not only important as an economic boost, but also as the foundation of the Norwegian welfare state………………………………………..Full Article: Source

East Timor’s Gusmao makes way for younger generation

Posted on 11 February 2015 by VRS  |  Email |Print

Oil and gas currently fund around 90 percent of the annual government revenue and also account for around 80 percent of GDP and 93 percent of exports. With the proceeds from gas extraction the government has established a sovereign wealth fund, hoping to ensure a more diversified economy and more widely distributed economic growth.
While East Timor’s sovereign wealth fund will likely provide a temporary buffer for the loss of oil and gas revenues, the size of the fund is still moderate, with an estimated 16.6 billion USD in assets, according to experts………………………………………..Full Article: Source

Temasek eyes Crompton Greaves’ fan biz

Posted on 10 February 2015 by VRS  |  Email |Print

Singapore state fund Temasek Holdings is a frontrunner to buy a $200-million stake in the about to be demerged consumer products business of India-based Crompton Greaves, which is controlled by billionaire Gautam Thapar, a media report said, quoting ‘multiple sources directly familiar with the matter’.
According to the Times of India, the Singapore fund has entered into exclusive negotiations with Crompton Greaves’ promoter, to acquire around 20 per cent stake in the company, ahead of rivals such as General Atlantic Partners and Bain Capital………………………………………..Full Article: Source

Gulf institutional funds favor Japan, Asia, shun Europe

Posted on 09 February 2015 by VRS  |  Email |Print

Gulf institutional investors are putting their money into Asian equities, in particular Japanese stocks, but are shunning European shares after years of underperformance, the Middle East head of Pictet Asset Management said. Many of these Middle Eastern entities, including some of the world’s largest sovereign wealth funds, have traditionally been regarded as significant investors into European developed markets.
Qatar for example, through Qatar Investment Authority and its subsidiaries, has in recent years embarked on an aggressive expansion spree which has seen it buy up stakes in major companies such as Volkswagen and Siemens, as well as real estate and infrastructure on the continent………………………………………..Full Article: Source

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