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GIC buys office space in Tokyo

Posted on 22 October 2014 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC has acquired an office component within a building in central Tokyo, estimated to cost about 170 billion yen (S$2 billion). The 32-storey high Pacific Century Place Marunouchi was acquired through a GIC affiliate, said GIC in a statement today (Oct 21).
GIC’s purchase covers all of the office space from levels 8 to 31, but excludes other components within the building such as the Four Seasons Hotel. The building is located next to the JR Tokyo train station and has nearly 39,000sqm of rentable space………………………………………..Full Article: Source

Investors in Japanese Property Look Beyond Tokyo

Posted on 22 October 2014 by VRS  |  Email |Print

When it costs nearly $2 billion to buy just part of a building in a prime Tokyo location, it is no wonder some investors in Japanese property are looking farther afield. Singapore sovereign-wealth fund GIC Pte. Ltd. said Tuesday it bought 24 floors of Pacific Century Place Marunouchi, a building next to Tokyo Station, in a bid to grab a slice of Japan’s hot property market. A person with knowledge of the deal said the cost was $1.7 billion.
Total real-estate investment in Japan rose to ¥3.5 trillion ($33 billion) from the start of the year through September, the highest level since 2007 and a 13% increase from the same period last year, according to data from Urban Research Institute Corp., a real-estate think tank operated by Mizuho Trust & Banking Co………………………………………..Full Article: Source

GIC Buys Tokyo Building in Bet on Rising Property Prices

Posted on 21 October 2014 by VRS  |  Email |Print

GIC Pte, Singapore’s sovereign wealth fund, bought a building next to Tokyo Station in a bet that the city’s real estate values will continue to rise. GIC paid $1.7 billion for the property, according to a person familiar with the purchase who asked not be named because the information isn’t public. The fund, which declined to comment on the price, said it acquired the office component of the Pacific Century Place Marunouchi.
The building was sold by Secured Capital Japan Co., a real estate arm of Hong Kong-based alternative-asset manager PAG, according to statements by the buyer and seller. Real estate prices in Tokyo have risen about 20 percent since Prime Minister Shinzo Abe took office almost two years ago, Deutsche Asset & Wealth Management estimated, with property investment in the country rising 70 percent to 4.6 trillion yen ($43 billion), the highest in six years………………………………………..Full Article: Source

Norway’s wealth fund buys Munich office buildings

Posted on 15 October 2014 by VRS  |  Email |Print

Norway’s $840-billion sovereign wealth fund purchased a 94.9 percent stake in several firms that own two office buildings in Munich’s Lenbach Gärten quarter, the fund said on Tuesday. The fund purchased the stakes from AM Alpha GmbH for a total consideration of 176.1 million euro, including 75 million euro of third-party debt, it said in a statement.
The buildings have 29,000 square meters of total leasable area and are primarily leased to McKinsey & Company Inc. and Condé Nast Verlag GmbH………………………………………..Full Article: Source

Norwegian oil fund snaps up office properties in Munich

Posted on 15 October 2014 by VRS  |  Email |Print

Norges Bank Investment Management has bought its first properties in Munich on its own. The Norwegian sovereign wealth fund has paid AM Alpha €176.1m for two office assets in the centre of the German city. The deal is the fund’s first German purchase without a partner.
Siegmut Boehm, managing director at AM Alpha, said: “We had overwhelming interest when we started the bidding process from both international and domestic investors, and we are glad to have chosen a top financial institution like Norges Bank Investment Management as an investor for our prime properties.”……………………………………….Full Article: Source

GIC sells London property to Norway sovereign fund for $1.2b

Posted on 13 October 2014 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC has sold its entire stake in the Bank of America Merrill Lynch Financial Centre in London for £582.5 million (S$1.2 billion). Norges Bank Investment Management, Norway’s sovereign wealth fund, is the buyer of the prime freehold property in London’s financial district, said GIC.
The move follows GIC’s full acquisition of the RomaEst Shopping Centre - in which it already had a 50 per cent interest - in Italy on Monday. GIC bought the 585,000 sq ft London office property from Merrill Lynch in 2007 for £480 million, beating investors such as Syrian-born tycoon Simon Halabi and Irish investor Derek Quinlan………………………………………..Full Article: Source

Norges Bank IM finalises real estate deals in Netherlands, UK

Posted on 13 October 2014 by VRS  |  Email |Print

Norges Bank Investment Management has bought a London office asset from GIC, the Singapore-based sovereign wealth fund. The Bank of America Merrill Lynch complex in the City district of the London capital was sold for around £582.5m (€738m), according to media reports.
The sale of the 585,000sqft London asset is another example of the appreciation in value of London commercial real estate. GIC paid £480m for the property in 2007. Last month, it emerged that South Korea’s NPS was selling the HSBC tower at Canary Wharf for around £1.1bn – having paid £772m in late 2009………………………………………..Full Article: Source

Singapore GIC Selling London Bank of America Merrill Lynch Financial Centre

Posted on 10 October 2014 by VRS  |  Email |Print

Sovereign-wealth fund GIC Pte. Ltd. has sold the Bank of America Merrill Lynch Financial Centre in London to Norway’s sovereign-wealth fund for £582.5 million ($944.5 million), in a latest move by the Singapore fund to rebalance its portfolio to focus on consumer and technology driven sectors.
Norges Bank Investment Management, will buy the 585,000 square foot office building which is fully let to Bank of America Merrill Lynch, which will continue to manage the property, Norges Bank and GIC said in a statement………………………………………..Full Article: Source

Norway’s oil fund buys London property from Singapore fund

Posted on 10 October 2014 by VRS  |  Email |Print

Norway’s $857-billion sovereign wealth fund purchased a central London office property for 582.5 million pounds ($944 million), it said on Thursday. The fund, commonly known as the oil fund, purchased the 585,000-square-foot Bank of America Merrill Lynch Financial Centre from GIC, the sovereign wealth fund of Singapore.
The real estate is fully let to Bank of America Merrill Lynch, which will continue to manage the property under the terms of the lease………………………………………..Full Article: Source

Norway’s $850 bln oil fund buys UK property with Prologis

Posted on 09 October 2014 by VRS  |  Email |Print

Norway’s $850 billion oil fund purhcased a 50 percent stake in a logistics property outside London for 55 million pounds ($88.58 million), the fund said in a statement on Wednesday.
The fund purchased the 65,000 square metre property through its joint venture with Prologis, it said………………………………………..Full Article: Source

GIC puts faith in eurozone property with EUR300mln in deals

Posted on 07 October 2014 by VRS  |  Email |Print

GIC has invested at least €300m ($375m) in two deals in Spain and Italy, highlighting the Singaporean sovereign wealth fund’s confidence in the prospects of two of the eurozone’s weakest economies.
The Asian fund, which manages a portfolio valued at S$100bn (US$78bn), said on Monday that it had become the sole owner of the Roma Est shopping centre, about 14km east of Rome. GIC paid an undisclosed sum for the 50 per cent stake that it did not own from CBRE Global Investors, the property management company………………………………………..Full Article: Source

GIC invests €200 million in Spanish real estate firm Gmp

Posted on 06 October 2014 by VRS  |  Email |Print

The Republic’s sovereign wealth fund GIC will invest more than €200 million to take a roughly 30 per cent stake in Spanish real estate company Gmp, the two organisations said in a statement on Monday (Sep 29). The investment by GIC will help Gmp strengthen its position as a major investor in the office and business park segment in Madrid and Barcelona.
Following GIC’s investment, Gmp will embark on a strategic plan which focuses on three main pillars: selective investment in office buildings, active management of the existing Gmp portfolio, including refurbishment work and improving energy efficiency, and selling non-strategic assets so that funds can be re-invested in properties with greater value creation potential………………………………………..Full Article: Source

Norway’s wealth fund sees property portfolio focused on global cities

Posted on 03 October 2014 by VRS  |  Email |Print

Norway’s $855 billion sovereign wealth fund, the world’s largest, will focus its future real estate acquisitions on booming global cities, its deputy chief said on Thursday. The fund, which owns on average 1.3 percent of all listed companies worldwide, invests 1.2 percent of its holdings in real estate but aims to increase that stake to 5 percent over time.
Some of its properties are located on London’s Regent Street and Savile Row, the Champs-Elysees in Paris and in New York. “We look for cities that are expected to see rising housing prices, that attract talent and people who are willing to pay to live in these cities,” Trond Grande, the fund’s deputy chief, told a business seminar………………………………………..Full Article: Source

Qatari developer in $697m land deal

Posted on 03 October 2014 by VRS  |  Email |Print

Qatar’s Barwa Real Estate says it will sell land worth QR2.54 billion ($697.4 million) to the government, marking the latest state assistance which the indebted developer has received. Qatari Diar, the real estate arm of Qatar’s sovereign wealth fund, stepped in with financial aid last year, agreeing to buy some of Barwa’s assets for $7.1 billion.
In exchange for a plot in Lusail City, Barwa received QR1.04 billion ($285 million) in cash, while the government also settled QR1.5 billion ($411 million) of the developer’s bank loans, according to the bourse filing. The size of the plot was not disclosed………………………………………..Full Article: Source

South Korea’s Sovereign Fund to Expand Alternative Asset Allocation

Posted on 01 October 2014 by VRS  |  Email |Print

Korea Investment Corp ., South Korea’s $72 billion sovereign-wealth fund, plans to increase allocation to alternative assets to up to 40% from a current 10% in the next few years, according to Chairman and Chief Executive Hongchul Ahn.
The sovereign fund also has reorganized the funding structure for traditional and alternative assets, consolidating separate buckets of capital into a common pool……………………………………….Full Article: Source

Private equity managers face growing competition for deals

Posted on 01 October 2014 by VRS  |  Email |Print

Last week, Singaporean sovereign wealth fund GIC, one of the world’s biggest and oldest backers of private equity funds, agreed to buy nearly half of RAC from its owner, Carlyle, in a deal valuing the company at more than £2bn including debt. The bid, which derailed plans to list the UK roadside recovery specialist, followed approaches from Apax, CVC, Cinven, Blackstone and Charterhouse, people with knowledge of the situation said.
The move highlights how years of record low interest rates are pushing some of the largest pension plans and sovereign wealth funds to invest their cash directly – and save the expensive fees charged by buyout fund managers – to boost returns. The intensifying trend is yet another illustration of the competitive squeeze affecting private equity houses’ ability to put money to work………………………………………..Full Article: Source

Alaska Permanent Fund Corp. says it will stick with hedge funds

Posted on 29 September 2014 by VRS  |  Email |Print

The Alaska Permanent Fund won’t be following the lead of California’s huge CalPERS public pension fund, which just made the startling decision to stop investing in hedge funds. But Mike Burns, executive director of the Alaska Permanent Fund Corp., which manages the Permanent Fund, says he understands why CalPERS managers did what they did.
“We think about it all the time,” he said. Hedge funds were created to “hedge” risk similar to an insurance policy. Big investors would use hedge funds to balance investment risks, like making investments that would go up if the stock market was to fall………………………………………..Full Article: Source

Norway now second-largest buyer of US commercial real estate

Posted on 25 September 2014 by VRS  |  Email |Print

Norway, surprisingly, now ranks second among foreign U.S. commercial real estate buyers, topped only by Canada. The sovereign fund that manages the country’s substantial oil wealth made a play for Blackstone Group’s 1095 Sixth Avenue just last week, in a deal that is expected to fetch up to $2.25 billion.
The move followed the Norges Bank Investment Management’s purchase of a 45 percent interest in 601 Lexington for $1.5 billion. In total, the country has spent over $3.2 billion on U.S. real estate so far this year, according to data from research firm Real Capital Analytics cited by Bloomberg News. The push comes as Norway looks to invest as much as 5 percent of its assets in real estate………………………………………..Full Article: Source

Norway Jumps to No. 2 Foreign Buyer of U.S. Real Estate

Posted on 24 September 2014 by VRS  |  Email |Print

Norway has vaulted to the top ranks of foreign U.S. commercial real estate buyers as its $870 billion sovereign-wealth fund, the world’s largest, acquires buildings from New York to San Francisco.
The country has spent more than $3.2 billion on U.S. real estate this year, including the assumption of debt, according to research firm Real Capital Analytics Inc. and statements from the wealth fund. That makes it the biggest international buyer after Canada. The total is more than double the amount spent in all of 2013, when Norway ranked No. 6 for property purchases………………………………………..Full Article: Source

Boston Properties to Sell Stakes in 3 Buildings to Norway Fund

Posted on 18 September 2014 by VRS  |  Email |Print

Boston Properties Inc. ( BXP ) agreed to sell a 45% interest in three buildings in New York City and Boston to affiliates of Norway’s sovereign-wealth fund for $1.5 billion. The deal with Norges Bank Investment Management involves stakes in 601 Lexington Avenue in New York City, as well as the Atlantic Wharf Office Building and 100 Federal Street in Boston. Each building is at least 91% leased.
The agreement is another example of foreign investors getting involved in U.S. commercial real estate. Increased demand from overseas has helped drive U.S. commercial property values to high levels, particularly in major cities favored by global firms……………………………………Full Article: Source

Norway Fund to Invest $1.5 Billion in Office Properties

Posted on 17 September 2014 by VRS  |  Email |Print

Norway’s sovereign-wealth fund, the world’s largest, agreed to buy stakes in three prime U.S. office buildings for about $1.5 billion, extending a real estate shopping spree as it seeks higher-yielding assets.
Affiliates of Norges Bank Investment Management, which manages the Norwegian government’s global pension fund, is acquiring 45 percent interests the buildings from Boston Properties Inc. , the seller said yesterday in a statement. The properties are 601 Lexington Ave. in New York and the Atlantic Wharf Office Building and 100 Federal Street in Boston…………………………………Full Article: Source

Dubai To Build $1.4B Royal Atlantis Resort By 2018

Posted on 16 September 2014 by VRS  |  Email |Print

Sovereign wealth fund Investment Corporation of Dubai announced on Monday plans for the $1.4 billion Royal Atlantis Resort and Residences on Palm Jumeirah island in Dubai, one of several new projects to be completed over the next three years.
The 46-story Royal Atlantis, an expansion of the existing Atlantis Hotel and Resort at Palm Jumeirah, will have 800 rooms and suites and 250 luxury residences, according to a joint statement of ICD and Kerzner International Holdings Ltd., which will operate the luxury resort………………………………………..Full Article: Source

Investment Corporation of Dubai and Kerzner International to Redefine Luxury in Dubai with The Royal Atlantis Resort and Residences on The Palm

Posted on 16 September 2014 by VRS  |  Email |Print

Investment Corporation of Dubai (ICD) and Kerzner International Holdings Limited (Kerzner), a leading international developer and operator of destination resorts and luxury hotels, today unveiled plans to forever enhance the landscape of Dubai with The Royal Atlantis Resort and Residences. Located on the crescent of The Palm and next to the iconic Atlantis resort, this new generation of distinctive luxury will offer a sophisticated lifestyle experience, edgier than any resort in the region, with infinite ocean views, accented with lush green spaces, encapsulated in dramatic architecture.
“This next phase of Atlantis, including the luxury residences of The Royal Atlantis, will continue to drive the growth of Dubai forward,” commented H.E. Mohammed Ibrahim Al Shaibani, Executive Director and CEO of Investment Corporation of Dubai (“ICD”) and Chairman of Kerzner International. “This investment reaffirms ICD’s commitment to support the long-term growth of our domestic hospitality market, a key pillar and growth sector for the Dubai economy.” H.E. Mohammed Al Shaibani reiterated the importance of this investment for Dubai and its strengthening hotel and tourism industry as the Emirate prepares to host the Expo World Fair in 2020. (Press Release)

Calpers to Exit Hedge Funds

Posted on 16 September 2014 by VRS  |  Email |Print

The largest U.S. public pension plan is getting out of hedge funds as part of an effort to simplify its assets and reduce costs, a retreat that could prompt other cities and states to consider similar moves. The California Public Employees’ Retirement System said Monday it would shed its entire $4 billion investment in hedge funds over the next year.
The pension known by the abbreviation Calpers, which manages $298 billion in investments and benefits for 1.6 million current and retired police officers, firefighters and other public employees, is a bellwether for investment trends at other public plans. Any shift it makes will likely influence others because of its size and history as an early adopter of alternatives to stocks and bonds………………………………………..Full Article: Source

Temasek exchanges on GBP175mln City buy

Posted on 11 September 2014 by VRS  |  Email |Print

Temasek Holdings, a sovereign wealth fund owned by the Government of Singapore, has exchanged contracts on its purchase of a 50% stake in MidCity Place, heralding its debut purchase outside of Asia. Temasek has paid Beacon Capital Partners, advised by Eastdil Secured, just over £175m for the half share in the 336,901 sq ft EC1 office trophy, a deal first revealed by CoStar News last month.
The deal was secured following a close run bidding war against other sovereign wealth funds drawn to the quality of the asset and the opportunity to share the ownership of the building with Oxford Properties, which owns the other 50% interest………………………………………..Full Article: Source

GIC gives private equity firms run for their money

Posted on 05 September 2014 by VRS  |  Email |Print

Singapore’s GIC is taking the unusual step of investing directly in unlisted firms, a move bankers say will be mimicked by other sovereign wealth funds as low yields spur fund managers to adopt a more hands-on attitude in their search for higher returns. In the first half of this year, GIC agreed to pay up to US$310 million (RM985.8 million) for minority stakes in two unlisted Philippine companies — food producer Century Canning Corp and hospital group Metro Pacific Investment Corp.
While the investments in the Southeast Asian archipelago nation formed just a tiny sliver of GIC’s estimated US$30 billion private equity portfolio, they marked a departure from GIC’s approach of putting money in a private equity fund that would then invest on its behalf, or co-investing with a buyout firm………………………………………..Full Article: Source

Going direct: GIC gives private equity firms run for their money

Posted on 04 September 2014 by VRS  |  Email |Print

Singapore’s GIC is taking the unusual step of investing directly in unlisted firms, a move bankers say will be mimicked by other sovereign wealth funds as low yields spur fund managers to adopt a more hands-on attitude in their search for higher returns.
In the first half of this year, GIC agreed to pay up to $310 million for minority stakes in two unlisted Philippine companies: food producer Century Canning Corp and hospital group Metro Pacific Investment Corp………………………………………..Full Article: Source

Brigade, Singapore’s GIC to invest $248 mln in Indian property sector

Posted on 02 September 2014 by VRS  |  Email |Print

Indian developer Brigade Enterprises and Singapore’s sovereign wealth fund GIC Pte Ltd have agreed to jointly invest 15 billion rupees ($248 million) in residential real estate projects in south India, the companies said. Brigade and GIC will invest in acquiring land and building homes and for mixed-use projects, the companies said in a statement on Monday.
Sovereign wealth funds and other long-term investors are eyeing opportunities in India’s real estate sector, as property prices continue to drop on the back of the slowest economic growth in a decade for the country………………………………………..Full Article: Source

Asian titans move outside for specialist investments

Posted on 02 September 2014 by VRS  |  Email |Print

Growing allocations to alternatives and multiasset strategies have left the sovereign wealth funds and national pension plans that dominate Asia’s institutional investor landscape relying more on external money managers to manage their portfolios.
China Investment Corp. reported external managers overseeing 67.2% of the Beijing-based fund’s more than US$200 billion international portfolio as of Dec. 31, up from 63.8% the year before. Korea’s National Pension Service said 33.8% of its 442 trillion won (US$436 billion) investment portfolio was outsourced to external managers as of Dec. 31, up from 30.9% the year before………………………………………..Full Article: Source

Singapore’s GIC in final talks to buy Tokyo building for $2b: Sources

Posted on 26 August 2014 by VRS  |  Email |Print

Singapore’s sovereign wealth fund is in talks to buy a Tokyo office tower for about 170 billion yen (S$2.04 billion), three people with knowledge of the deal said, in what would be Japan’s biggest property transaction since the financial crisis.
Singapore’s GIC Pte, which already has a large presence in Japan’s property market, outbid the asset management unit of Goldman Sachs Group Inc, which also participated in the final bid for the property, which was put up for sale by Secured Capital, part of Asian private equity firm PAG……………………………………….Full Article: Source

Giant Norway Oil Fund Plans Bigger Push into Real Estate

Posted on 21 August 2014 by VRS  |  Email |Print

Norway’s sovereign wealth fund is shaking up its leadership, doubling the number of top executives to 12 and hiring more staff as it prepares a significant boost to its investments in high-end office and retail properties in cities such as London, Paris, and New York.
“Looking at our real-estate purchases in the recent three years, we’ve barely kept pace with the fund’s growth,” Norges Bank Investment Management Chief Executive Yngve Slyngstad told The Wall Street Journal in an interview Wednesday………………………………………..Full Article: Source

PE Has Lowest Return Among Alternative Assets For Korea Investment Corp.

Posted on 18 August 2014 by VRS  |  Email |Print

Private equity has generated an 8.6% return during 2013 for Korea Investment Corp.the lowest among all alternative asset classes that the Korean sovereign wealth fund invests in, KIC’s most recent annual report shows. The $72-billion fund is the latest sovereign wealth fund to release annual reports this month, following its counterparts in China and Singapore. Those reports offer a rare window into performance of historically secretive sovereign wealth funds, which are increasingly flexing their muscle in the private equity industry both as fund investors and as direct deal makers.
KIC got into private equity investing in 2009, and in 2010, entered real estate and hedge funds. According to its annual report, private equity has generated lower returns than the other two asset classes, on all three metrics that KIC uses to measure returns. For 2013, private equity returned 8.6%, compared with 9% and 9.5% for hedge funds and real estate, respectively………………………………………..Full Article: Source

CVC Looks To Cement Deal With Sovereign Funds

Posted on 13 August 2014 by VRS  |  Email |Print

The private equity firm CVC Capital Partners is joining forces with some of the world’s biggest sovereign wealth funds to bid for £4bn of cement assets that would make it a major player in the building materials sector.
Sky News has learnt that CVC is in discussions with Singapore’s Government Investment Corporation (GIC) about a combined offer for a package of businesses being sold by Holcim and Lafarge , the Swiss and French cement giants, as they look to seal a £32bn merger………………………………………..Full Article: Source

Korea’s NPS to invest $386 million through private equity

Posted on 08 August 2014 by VRS  |  Email |Print

The National Pension Service (NPS), South Korea’s sovereign wealth fund, will invest 400 billion Korean won (US$386 million) into a fund managed by Hamilton Lane, a US-based private equity firm. In April this year, the US house closed its Private Equity Fund VIII, a fund of funds vehicle with $426.8 million AUM, which exceeded its target size of $400 million.
In June, the NPS, which manages 436 trillion won, hired a US-based adviser for real estate investment in Asia, in order to further its exposure in a space expected to generate higher returns. Boosting property investment is part of the Seoul-based agency’s plan to increase its proportion of alternative investments - including infrastructure, property and private equity - to 11.3% of assets in 2014………………………………………..Full Article: Source

Singapore’s GIC upped asset exposure to PE, bonds & emerging mkt equities in FY14

Posted on 05 August 2014 by VRS  |  Email |Print

Singapore’s GIC, one of the most active sovereign wealth funds in India, upped its exposure to private equity as an asset class besides bonds and emerging markets equities for the year ended March 31, 2014, as per its annual report.
As per the report, GIC cut its exposure to developed economy equities to 29 per cent, from 36 per cent during the same period. Development market equities which used to be the single biggest class for GIC in FY13 fell below bonds last year. The sovereign fund also upped its exposure to inflation-linked bonds last year………………………………………..Full Article: Source

Norway’s oil fund buys Paris property for 425.6 mln euros

Posted on 04 August 2014 by VRS  |  Email |Print

Norway’s $870 billion oil fund purchased a retail and office property in Paris from BlackRock Europe Property Fund III for 425.6 million euros, it said on Friday.
The 31,500-square-metres Le Madeleine building on Boulevard de la Madeleine will be managed by AXA Real Estate, the fund, the world’s biggest sovereign wealth fund, said in a statement………………………………………..Full Article: Source

Sovereign wealth funds eye european real estate

Posted on 01 August 2014 by VRS  |  Email |Print

According to a survey by international real estate advisor Savills, sovereign wealth funds in 2013 accounted for total investment volumes worth €5.5bn in key European markets (Belgium, France, Germany, Ireland, Italy, Netherlands, Poland, Spain, Sweden and the United Kingdom). The total is a year on year increase of 30%.
The firm notes that the top five sovereign wealth funds identified by the report were from the Middle East and Asia, with an average deal size per investor group of €700m over the year, up from €247m in 2012. Among the firms surveyed is the Qatar Investment Authority, led by chief executive Ahmad Al-Sayed………………………………………..Full Article: Source

Norway’s Oil Fund Buys Into Boston Property

Posted on 29 July 2014 by VRS  |  Email |Print

Norway’s sovereign-wealth fund said Monday it had acquired a 47.5% stake in an office property at One Beacon Street in Boston, in a joint venture with U.S. life insurer MetLife Inc. Norges Bank Investment Management, which manages Norway’s $891 billion fund, usually referred to as the “oil fund,” said it had paid $122.3 million for the stake, and said the property was valued at $561.5 million. The transaction included $304 million of existing debt, NBIM said.
The 1 million-square-feet property consists of nearly 100% office space, with a small retail component housing a bank and a lunchtime diner, NBIM said, adding that MetLife will manage the property………………………………………..Full Article: Source

MetLife Joins Norway Fund in $561 Million Boston Deal

Posted on 29 July 2014 by VRS  |  Email |Print

MetLife Inc. (MET), the largest U.S. life insurer, added another Boston office tower to its real estate partnership with Norway’s sovereign-wealth fund, expanding their joint venture to about $2.4 billion.
MetLife and Norges Bank Investment Management acquired the One Beacon Street building for about $561 million, the New York-based company said today in a statement. The insurer will own 52.5 percent of the 34-story tower, with Norges Bank controlling the rest………………………………………..Full Article: Source

Norges Bank to acquire US office assets worth nearly $1bn

Posted on 23 July 2014 by VRS  |  Email |Print

Norges Bank Investment Management (NBIM), which manages Norway’s sovereign wealth fund, is in talks to buy two office buildings in the US for $915m (€677m), according to sources. The properties in Boston and San Francisco are being bought in joint ventures with US insurer MetLife and TIAA-CREF, respectively.
The Boston property – the 1m sqft One Beacon Street building – is expected to be sold for around $565m by Allianz Real Estate and Beacon Capital Partners, which bought the asset for its closed-end Strategic Partners IV fund in 2006………………………………………..Full Article: Source

GIC said to have backed out of Tokyo property deal

Posted on 16 July 2014 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC has backed out of buying a Tokyo property from Lone Star Funds due to a legal dispute over the property’s ownership, said people familiar with the transaction.
GIC earlier this year agreed to buy Meguro Gajoen, an office complex and a wedding hall, for about US$1.3 billion (S$1.61 billion). If finalised, it would be one of the largest property deals in Tokyo since the 2008 financial crisis. However, GIC is now cautious about completing the sale due to a lawsuit filed in April by the family of Meguro Gajoen’s founder, Mr Rikizo Hosokawa, said the sources………………………………………..Full Article: Source

Lone Star reopens Tokyo property deal as GIC talks stall

Posted on 16 July 2014 by VRS  |  Email |Print

Global buyout firm Lone Star Funds is looking for buyers for a complex of buildings in central Tokyo after exclusive talks with Singapore’s sovereign wealth fund GIC Pte Ltd stalled due to a legal dispute over the property’s ownership, according to three people with direct knowledge of the matter.
GIC earlier this year agreed to buy Meguro Gajoen, an office complex and a wedding hall, for about $1.3 billion which, if finalised, would be one of the largest property deals in Tokyo since the 2008 financial crisis. GIC, however, is now cautious about completing the sale due to a lawsuit filed in April by the family of Meguro Gajoen’s founder, Rikizo Hosokawa, said the sources, who declined to be named because the matter remains confidential………………………………………..Full Article: Source

Chasing Yield, Its Not Just Japan, SWFs Join The Hunt

Posted on 16 July 2014 by VRS  |  Email |Print

Real estate is a beneficiary, as is the stock market, and “they are taking money out of the debt markets,” says Barry Sternlicht, chairman and CEO, Starwood Capital. His last point is interesting considering the widespread low yields in government debt and corporate paper (if SWFs are selling, someone is buying). Anyway, like we’ve all heard others warn, Sternlicht brings up the “crowded trade” risk, but concludes that he doesn’t think rates are going anywhere globally because the world’s economies aren’t strong enough.
While some investors such as SWFs, pension funds, and retirees may absolutely need portfolio income, value investors and those that have long-term horizons with no immediate need or preference for income ought to ensure margin of safety first (that goes without saying, to which I will add opportunistically watching for compounders at very reasonable prices ………………………………………….Full Article: Source

Qatari Diar to Own Seef Lusail Real Estate Development

Posted on 15 July 2014 by VRS  |  Email |Print

Masraf Al Rayan announced yesterday it has entered into an agreement to sell its equity stake in Seef Lusail Real Estate Development Company. Seef Lusail Real Estate Development Company WLL was owned equally by Masraf Al Rayan and Qatari Diar Infrastructure Company.
In line with the agreement between the parties, Masraf Al Rayan has sold its 50 percent equity stake in Seef Lusail to Qatari Diar Infrastructure Company (49 percent) and Qatari Diar Real Estate Investment Company (1 percent). Adel Mustafawi,Group CEO of Masraf Al Rayan stated that this investment has achieved its objectives as planned………………………………………..Full Article: Source

Norway Outlines Staff Plan to Boost Real Estate Holdings

Posted on 08 July 2014 by VRS  |  Email |Print

The Norway Pension Fund-Global has begun recruiting for the team that will oversee an eventual 5% allocation of its $825 billion capital pool to real estate. Norges Bank Investment Management (NBIM), which oversees the asset allocation and implementation of strategy for the world’s largest sovereign wealth fund, has advertised three positions on its website—and the closing date is drawing near.
NBIM is looking for chief risk, administrative, and operations officers, who can choose to be located either in London or Oslo. All three positions would see the successful candidate become part of the fund’s Real Estate Leader Group……………………………………..Full Article: Source

Biggest Wealth Fund Forms New Real Estate Group

Posted on 07 July 2014 by VRS  |  Email |Print

Norway’s $890 billion sovereign wealth fund, the world’s biggest, is seeking top executives for a new real estate group that will invest almost $10 billion annually in properties over the next three years.
The fund, based in Oslo, is looking to hire new chief risk, operating and administrative officers for real estate, according to job postings on its website and in newspapers. The new executives will have “key roles in implementing a new organizational structure, and further develop our ability to invest and manage real estate assets,” the fund said………………………………………..Full Article: Source

Hyde Park Barracks inspected by Abu Dhabi wealth fund

Posted on 07 July 2014 by VRS  |  Email |Print

Hyde Park Barracks, historic home of the Household Cavalry, is being eyed by an Abu Dhabi sovereign wealth fund, the latest instance of Middle Eastern investors circling trophy assets in London. Property sources indicated the latest name to be associated with the site is Mubadala Development Company, a fund controlled by the government of Abu Dhabi.
The Ministry of Defence was initially approached by a raft of interested parties, including luxury property developer Christian Candy, in October last year, eager to secure the six-acre site………………………………………..Full Article: Source

ADIA expands alternative investment teams

Posted on 02 July 2014 by VRS  |  Email |Print

The Abu Dhabi Investment Authority (ADIA) has expanded its investment teams for illiquid asset classes such as real estate, infrastructure and private equity. The sovereign wealth fund also restructured its accounts department and recruited for its IT team, and says overall staff numbers rose to more than 1,500 at the end of last year, an increase of 100 compared with 2012.
“We have built out our investment teams in the illiquid space, such as real estate, infrastructure and, more recently, private equity, adding considerable expertise across geographies and asset specialisation,” says Hamed bin Zayed Al Nahyan, managing director, in the fund’s 2013 review………………………………………..Full Article: Source

Abu Dhabi fund ADIA bullish on infrastructure, alternative investments

Posted on 01 July 2014 by VRS  |  Email |Print

Abu Dhabi Investment Authority (ADIA), one of the world’s largest sovereign wealth funds, is bullish on infrastructure and alternative investments in 2014, it said on Tuesday after reporting its 20-year annualised returns fell last year. Headquartered in the capital of the United Arab Emirates, ADIA manages the surpluses of Abu Dhabi’s earnings from oil exports and has assets estimated at $773 billion by the Sovereign Wealth Fund Institute.
Publishing its annual review for 2013, which provides rare insights into ADIA’s broad strategy, the fund said alternative investments - those outside mainstream areas such as equities and bonds - achieved their overall target last year. Its hedge fund portfolio delivered strong results despite challenging market conditions………………………………………..Full Article: Source

Norway sovereign fund beefs up to buy more real assets

Posted on 27 June 2014 by VRS  |  Email |Print

Norway’s US$890 billion sovereign wealth fund, the world’s biggest, is building up its organisation and preparing for a move into infrastructure and private equity, its chief executive officer, Yngve Slyngstad, said.
The fund, in a strategy document released on Monday, revealed it was boosting its staff by about 60 per cent over the next three years to tackle increased investments in real estate and said it’s preparing for more investments in assets “with income streams that grow in line with the global economy”………………………………………..Full Article: Source

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