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Sovereign Wealth Funds Briefing - Category | Alternative Investments more

SWFs Eye New Private Equity Strategies

Posted on 02 March 2015 by VRS  |  Email |Print

Sovereign wealth funds are adopting new approaches to private equity investments, we learned this week. Guy Hands, founder of London-based Terra Firma, told Sovereign Wealth Center that state-owned investors are showing interest in the firm’s innovative new model; unusually, Terra Firma’s remuneration will derive almost entirely from performance, not myriad management and service fees. That’s proving attractive to sovereign funds, several of which have recently complained about the spiraling costs of private equity managers.
Sovereign Wealth Center understands that the Abu Dhabi Investment Council (ADIC) is one of the funds that is actively working alongside private equity managers, rather than passively investing in funds. ADIC may be the fund that is rumored to be partnering with London-based Coller Capital, a specialist investor in private equity’s secondary market, to help restructure Irving Place Capital Partners III, a $2.7 billion buyout fund raised in 2006 by Irving Place Capital Management of New York………………………………………..Full Article: Source

Norway sovereign fund bulks up on real estate

Posted on 25 February 2015 by VRS  |  Email |Print

Norway’s state-run investment fund is becoming one of the world’s biggest landlords at a time when other big commercial property owners are sounding alarms about high prices. The $874 billion Government Pension Fund of Norway, the world’s largest sovereign-wealth fund, last year purchased $7.6 billion worth of property globally, more than any other sovereign fund, according to data from real-estate tracker Real Capital Analytics.
The push is part of a broader strategy to improve returns by taking on more risk. The fund, which has generated an annual return of 3.7% since 1998, aims over time to boost its real-estate holdings to 5% from the current 1.3%………………………………………..Full Article: Source

Gulf invests $3bn in UK property in 2014

Posted on 23 February 2015 by VRS  |  Email |Print

Gulf states directly invested $3 billion in UK property in 2014, according to new statistics. As yet unpublished research by CBRE shows that the Gulf accounted for 10 percent of the total $26 billion of direct capital flows into the UK real estate market – predominantly in London – last year.
Almost 50 percent of that contribution came from Qatar, which directly invested at least $1.3 billion through transactions including the acquisition of HSBC’s London headquarters by the nation’s sovereign wealth fund, and of Canary Wharf owner Songbird Estates by a Qatari-led consortium last month………………………………………..Full Article: Source

Abu Dhabi Investment Authority Deploys Capital to European Real Estate

Posted on 17 February 2015 by VRS  |  Email |Print

Seeking higher investment yields in recent times, Abu Dhabi Investment Authority (ADIA) has largely bypassed London properties to focus more on Continental European opportunities. The Gulf-based sovereign wealth fund invests in both developed properties and in construction projects - unafraid of developmental risks.
For example, a sovereign wealth enterprise of ADIA is backing a project to construct the Mall of Switzerland near Lucerne. In May 2014, ADIA took a 14.3% stake in Deutsche Annington which owns around 180,000 residential units across Germany……………………………………….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

China Sovereign Fund Buys $1.2B Tokyo Building From Mori

Posted on 16 February 2015 by VRS  |  Email |Print

Relations between Beijing and Tokyo may have been tense in recent years, but that didn’t stop a Chinese sovereign fund from teaming up with LaSalle Investment Management of the US to buy a Tokyo mixed-use complex for ¥140 billion ($1.2 billion).
The participation in the real estate deal by China Investment Corporation, one of the funds responsible for managing the country’s estimated $4 trillion in foreign reserves, comes after Chinese buyers have rapidly increased their spending on Japanese property, particularly in the nation’s capital………………………………………..Full Article: Source

Future Fund backs Calpers’ ‘less is more’ stance on private equity

Posted on 16 February 2015 by VRS  |  Email |Print

The head of one of the world’s largest investors in private equity believes Calpers, the US’s biggest pension fund, was right to slash the number of private equity managers it uses in what is a further blow to the sector. Calpers, or the California Public Employees’ Retirement System, told the FT last month that it was hoping to cut the number of private equity managers it uses by more than two-thirds to 120 in order to cut costs.
David Neal, managing director of the Future Fund, Australia’s A$109bn sovereign wealth fund, said: “There just are not enough decent private equity managers around to justify the fees. Calpers was right; the fees are just too high to warrant having 300 firms.” The Future Fund, set up in 2006 to provide pensions for public servants, has almost a third of its assets in private equity, alternatives and infrastructure………………………………………..Full Article: Source

Qatar’s clean sweep builds UK assets portfolio

Posted on 16 February 2015 by VRS  |  Email |Print

The Qatar Investment Authority’s most recent acquisition is only the tip of an asset-owning iceberg — one some observers are becoming concerned about. Qatar’s sovereign wealth fund, effectively owned by the Qatari royal family, now has control of London assets that include The Shard, Europe’s tallest office block; the Olympic Village, which is rapidly being redeveloped as a new residential district as well as sporting and leisure venues; the HSBC tower at Canary Wharf; Harrods; a stake in the Shell Centre on the South Bank; the residential redevelopment at Chelsea Barracks; half of the luxury apartment block One Hyde Park, the former US embassy in Grosvenor Square; and an emerging Thames-side development in Chelsea known as Grosvenor Waterside.
Even as market analysts were scratching their heads at the implications of the Canary Wharf deal, Qatar — in the form of Qatar Airways — confounded the City again………………………………………..Full Article: Source

China’s CIC bought Tokyo landmark property-advisers

Posted on 13 February 2015 by VRS  |  Email |Print

China’s sovereign wealth fund China Investment Corp (CIC) provided most of the capital for a more than $1 billion purchase of Tokyo’s landmark property Meguro Gajoen from Mori Trust Co, in China’s largest investment in Japanese property, advisers said.
Earlier this week, LaSalle Investment Management, a property investment manager, said a fund it arranged bought Meguro Gajoen with money from a sovereign wealth fund, which it declined to name………………………………………..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

How Hedge Funds Can Access Sovereign Wealth Funds

Posted on 12 February 2015 by VRS  |  Email |Print

As U.S. pensions such as California Public Employees’ Retirement System which pulled out of hedge funds in 2014, and New Mexico Public Employees’ Retirement Association which lowered its hedge fund allocation from 7% to 4%, sovereign wealth funds are becoming a larger target market for hedge funds. There is a segment of sovereign wealth funds that allocate to hedge funds to achieve specific investment goals.
For example, the Korea Investment Corporation (KIC) is a sovereign wealth fund that invests in hedge funds. One of KIC’s former chief investment officers Scott Kalb possessed a strong hedge fund background. Some other sovereign funds that commit capital to hedge funds include, but not limited: Abu Dhabi Investment Authority (ADIA), Australia’s Future Fund, Alaska Permanent Fund and Temasek Holdings………………………………………..Full Article: Source

LaSalle, CIC Buy Meguro Gajoen Complex in Tokyo for ¥140 Billion

Posted on 10 February 2015 by VRS  |  Email |Print

U.S.-based LaSalle Investment Management Inc. and sovereign-wealth fund China Investment Corp. have teamed up to buy the Meguro Gajoen commercial property complex in Tokyo for around ¥140 billion ($1.2 billion), according to a person familiar with the transaction, the latest sign of renewed strength in the city’s property market.
The purchase was made in late January by a joint venture with a sovereign-wealth fund, LaSalle Investment Management said in a statement Monday, without naming CIC or the price tag. A spokeswoman for LaSalle in Japan declined to comment on the identity of the sovereign-wealth fund or the acquisition cost. CIC didn’t respond to a request for comment………………………………………..Full Article: Source

Jain Housing Raises Funds From Singapore’s GIC

Posted on 06 February 2015 by VRS  |  Email |Print

Chennai based Jain Housing and Construction has raised R220 Cr from Singapore government’s investment arm, GIC Private Limited. The investment was made by subscribing to NCD’s issued by the company carrying a coupon of 15.25% pa with a tenor of 48 months.
GIC has subscribed to NCD’s worth R220 Cr and the balance would be subscribed later. The company has successfully executed around 150 residential projects aggregating close to 7.0 Mn.sq.ft and has a total of 6.9 msf of residential projects under construction (Crisil Rating)………………………………………..Full Article: Source

GIC of Singapore invests in Jain Housing

Posted on 05 February 2015 by VRS  |  Email |Print

Jain Housing and Constructions has raised Rs240 crore through debt from Singapore’s sovereign wealth fund GIC Pte Ltd. The company has issued 2,200 non-convertible debentures of Rs10 lakh each to GIC. The issue price was Rs9.89 lakh, at a coupon rate of 15.25 per cent a year. These debentures, redeemable within the next 48 months from the date of allotment, have also been listed on the BSE, said Sandeep Mehta, MD, Jain Housing.
The amount was raised to fund three of its proposed premium residential projects – Jains Inseli Park with 808 apartments, Jains Pebble Brook I with 620 apartments and Jains Pebble Brook II with 356 apartments – on the city’s IT corridor Old Mahabalipuram Road………………………………………..Full Article: Source

Norway’s $850b sovereign fund purchases 74,500-sq-ft office, property in London

Posted on 03 February 2015 by VRS  |  Email |Print

Norway’s $850 billion sovereign wealth fund purchased a 74,500-square-foot office and retail property in central London from Fondo David, a real estate fund managed by Sorgente SGR, it said in a statement on Friday.
The fund paid 190.6 million pounds ($287.41 million) for the Queensberry House at 3-9 Old Burlington Street in London, where it is also a tenant………………………………………..Full Article: Source

Norway Pension pays £191m for London Savile Row HQ

Posted on 02 February 2015 by VRS  |  Email |Print

Norway’s €755bn sovereign wealth fund Pension Fund Global has bought Queensbury House on Savile Row in central London - in which its management group is a principal tenant - from Italy’s Sorgente Group for £190.6m.
Norges Bank Investment Management, which manages the giant fund, bought the building in an all-cash deal, repaying all debt secured against the building. Sorgente, which held the property in its Fondo David, put the building up for sale last year with a £190m asking price. The building, which fronts onto Old Burlington Street and the renowned Savile Row, has 6,300 sq.m. of office space spread over six floors and 650 sq.m. of retail let to mens’ tailors. Norges is one of five tenants, also including private equity firm Summit Partners, and GB Holdings………………………………………..Full Article: Source

Dubai fund signs deal to acquire Korean builder

Posted on 30 January 2015 by VRS  |  Email |Print

Ending years of efforts to find a new owner, Ssangyong Engineering & Construction signed an acquisition deal with the Investment Corporation of Dubai on Thursday. “The company’s credibility is expected to increase significantly as one of the world’s sovereign wealth funds will become the largest shareholder of the construction firm,” said Ssangyong, Korea’s 19th-largest building firm by construction capacity.
Under the deal, the Dubai-based state-run sovereign wealth fund will acquire newly issued Ssangyong shares, worth 200 billion won ($183 million). The ICD boasts the second-most assets under management in the United Arab Emirates, controlling assets of $160 billion……………………………………….Full Article: Source

Qatari sovereign wealth fund buys Canary Wharf for $4bn

Posted on 29 January 2015 by VRS  |  Email |Print

A joint venture between Qatar’s sovereign wealth fund and Canadian developer Brookfield Property Partners is poised to take control of Canary Wharf for $4bn after the three largest shareholders in the present owner, Songbird Estates, accepted the deal.
Songbird conceded defeat after New York investor Simon Glick, the China Investment Corporation and Morgan Stanley said they would support the deal. As the Qatar Investment Authority (QIA) is the largest shareholder with 29% of Songbird’s shares, the deal had 86% support………………………………………..Full Article: Source

Canary Wharf Owner’s Largest Shareholders Back Acquisition Bid

Posted on 29 January 2015 by VRS  |  Email |Print

The owner of the Canary Wharf office and retail development said on Wednesday that its largest shareholders had voiced support for a hostile bid for the company by Qatar’s sovereign wealth fund and Brookfield Property Partners.
With the show of support, Brookfield and the wealth fund, the Qatar Investment Authority, are likely to succeed in their bid to acquire Songbird Estates, which has a controlling stake in the Canary Wharf Group development. They made a final, all-cash offer last month for all of Songbird’s outstanding shares that valued the company at 2.6 billion pounds, or about $3.9 billion………………………………………..Full Article: Source

Singapore’s GIC bets heavily on Indian realty

Posted on 29 January 2015 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC, has bet highly on Indian real estate in the recent months. GIC, which manages assets worth $100 billion globally, has invested or committed Rs 2,500 crore in the many deals it has done in the past six months. GIC is ahead of Blackstone, another prolific global investor in Indian real estate, which has reportedly done deals worth about Rs 1,500 crore in six months.
Abu Dhabi Investment Authority (ADIA) and Canada Pension Plan Investment Board (CPPIB) are also active in the sector, GIC does deals on its own besides “platform deals” with developers, says the head of a US-based private equity (PE) fund, on condition of anonymity………………………………………..Full Article: Source

Singapore’s GIC in talks to invest in Vatika Realty Projects

Posted on 29 January 2015 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC is in talks with Gurgaon-based realty developer Vatika Group to form an exclusive alliance to invest in residential and commercial properties in north India. GIC is looking to infuse around $150 million in this platform in addition to its recent investments in two residential projects of Vatika Group in Gurgaon, said two persons familiar with the development.
In December, GIC had invested Rs 150 crore in a joint venture with Vatika Group to develop two projects with a development potential of over 2.3 million sq ft in Gurgaon. GIC is betting big on the Indian real estate market and has been actively scouting for assets. In December, the fund had signed an agreement to acquire a 39% stake in Nirlon that owns 3.3-million-sq-ft IT park in the Goregaon suburb of Mumbai………………………………………..Full Article: Source

Auckland property deal with Singapore’s GIC gets OK

Posted on 28 January 2015 by VRS  |  Email |Print

A Singaporean sovereign wealth fund has been given permission to buy a 49 per cent stake in a $313 million portfolio of Auckland Viaduct properties. The Overseas Investment Office has agreed to let Singapore-based GIC invest in a joint venture with Goodman Property Trust.
The trust owns a portfolio of Viaduct properties including the Air New Zealand building, the Fonterra building which is still under construction, and a half share in the Viaduct Corporate Centre.The joint venture can now go unconditional and settlement is expected in February………………………………………..Full Article: Source

Qatari Diar secures Sinai, Egypt project approval

Posted on 28 January 2015 by VRS  |  Email |Print

Qatari Diar, the property arm of the Gulf state’s sovereign wealth fund, is said to have received approvals for its exclusive North and South Sinai project in Egypt. According to a report carried by Daily New Egypt, the country’s Tourism Development Authority has received the approvals required by the Egyptian Ministry of Defence for Qatari Diar to start on the new development.
The $2.16 billion project in North and South Sinai will include hotels, shopping malls and residential homes. Qatari Diar currently has two major projects in Egypt. The Nile Corniche development is under construction in the centre of Cairo under Consolidated Contractors Company, and is progressing well………………………………………..Full Article: Source

LPFA, Greater Manchester launch GBP500m real assets fund

Posted on 26 January 2015 by VRS  |  Email |Print

Pension funds in London and Manchester have joined forces for a £500 million ($757 million) infrastructure fund that could expand to rival the multibillion-dollar sovereign-wealth funds that are regular buyers of large U.K. development projects such as railroads and airports. “If you want a good crop you have to plant a few seeds. You can’t just plant one,”Kieran Quinn, chairman of the Manchester pension fund said. “We are creating something that can come close to or equal a sovereign-wealth fund.”
LPFA Chairman Edmund Truell told The Wall Street Journal in December that he is trying to implement London Mayor Boris Johnson ’s vision of creating a U.K. citizens’ wealth fund to rival the sovereign-wealth funds. The mayor appointed Mr. Truell to oversee the pension fund………………………………………..Full Article: Source

Korean Sovereign Fund to Double Alternative Assets (Video)

Posted on 22 January 2015 by VRS  |  Email |Print

Korea Investment Corp., South Korea’s $85 billion sovereign wealth fund, plans to more than double its allocation to alternative investments by the end of 2015, said Chairman and Chief Executive Hongchul Ahn.……………………………………….Full Article: Source

China’s European Shopping Spree

Posted on 22 January 2015 by VRS  |  Email |Print

China’s European presence blossomed in 2008 in debt-ridden Greece, where Beijing-owned shipping giant Cosco started building a European hub around the Pirea Harbour, near Athens. Even in Germany, the eurozone’s largest economy, medium-size companies such as manufacturer Putzmeister and electronics firm Medion now have Chinese owners.
An important question is whether China could—perhaps through its sovereign fund, China Investment Corp.—contribute to Europe’s new €315 billion long-term reconstruction plan. As conceived by the European Commission, the package seeks to jumpstart the European Union economy after years of recession. Further Chinese investment, especially in European infrastructure, could help………………………………………..Full Article: Source

Asian Fund Pays $1,800 Per Sq Ft For Silicon Valley Complex

Posted on 15 January 2015 by VRS  |  Email |Print

Sand Hill Road in Menlo Park, Ca. is renowned for being one of the most prestigious office addresses in Silicon Valley. Now it’s also setting new records for office building sale prices.
An Asian sovereign wealth fund represented by Invesco Real Estate has purchased a 49% stake in Sand Hill Commons in a deal that values the 133,000 complex at $240 million, according to people familiar with the matter. The price for the property at 2882 and 2884 Sand Hill Road, roughly $1,800 a square foot, is one of the highest paid for Silicon Valley real estate, brokers say………………………………………..Full Article: Source

ADIA in talks with Runwal for a joint development venture

Posted on 15 January 2015 by VRS  |  Email |Print

United Arab Emirates-based sovereign wealth fund Abu Dhabi Investment Authority (ADIA) is in talks with Indian developer Runwal Group to jointly buy land and develop properties in India, said two persons in the know.
If the talks fructify, this will be ADIA’s second joint venture in India. It has forged a similar arrangement with Hines India Real Estate, the Indian arm of US-based property investment and management firm Hines, to invest in properties across north India………………………………………..Full Article: Source

Crowded by Gulf wealth? Locals forced out of London’s property investment

Posted on 14 January 2015 by VRS  |  Email |Print

Last year, more than 55 billion pounds ($83.5 billion) was invested in commercial property across the country, much of it by pension funds, insurers and sovereign wealth funds looking for steady, long-term income. But local investors are increasingly seeing advantage elsewhere.
After improving a building – with a view to holding it for an average of seven to 10 years – the investment arm of insurer Legal & General can sell it as a performing asset to another long-term holder such as a pension scheme or sovereign wealth fund………………………………………..Full Article: Source

Qatari firm invests in major tourist projects in Egypt

Posted on 12 January 2015 by VRS  |  Email |Print

Qatari Diar (QD) is one of the major real estate companies in Qatar, belonging to the Qatari Investment Authority (QIA). The company was founded in 2005 to support the country’s growing economy and to implement real estate development projects inside and outside Qatar.
QIA is a sovereign wealth fund that serves local and foreign investments. It was established by the Qatari Government in 2005 to manage the surpluses of oil and natural gas. QIA’s assets range between $100bn and $200bn………………………………………..Full Article: Source

Qatari Diar invests in Egypt with 2 major tourist projects

Posted on 12 January 2015 by VRS  |  Email |Print

Qatari Diar (QD) is one of the major real estate companies in Qatar, belonging to the Qatari Investment Authority (QIA). The company was founded in 2005 to support the country’s growing economy and to implement real estate development projects inside and outside Qatar.
QIA is a sovereign wealth fund that serves local and foreign investments. It was established by the Qatari Government in 2005 to manage the surpluses of oil and natural gas. QIA’s assets range between $100bn and $200bn………………………………………..Full Article: Source

Singapore’s GIC deepens India real estate exposure

Posted on 12 January 2015 by VRS  |  Email |Print

Singapore’s sovereign wealth fund (SWF), GIC Private Limited, has extended its recent investments into India’s real estate market via a partnership with private equity firm Kohlberg Kravis Roberts & Co (KKR).
The tie-up will see KKR, which manages more than US$96 billion, establish a non-banking financial company (NBFC) to provide structured credit for India’s property sector. GIC, one of the world’s largest sovereign investors, will provide an unspecified investment………………………………………..Full Article: Source

KKR teams with GIC to form non-banking finance company in India

Posted on 09 January 2015 by VRS  |  Email |Print

KKR, the global investment firm, has formed its second non-banking financial company (NBFC) for the Indian market, with an investment from Singapore’s sovereign wealth fund GIC. The new platform will provide structured credit to the country’s real estate sector, the company said in a statement on Thursday.
The amount to invested by GIC has not been disclosed. Through its first NBFC, KKR provided solutions across the capital structure. Since 2009, KKR has extended more than $2 billion of structured financing to 21 business groups in India………………………………………..Full Article: Source

Qatari Diar transfers Al Khaliji stake to Qatar Investment Authority

Posted on 08 January 2015 by VRS  |  Email |Print

Qatari Diar has transferred its shares in Al Khaliji Commercial Bank to Qatar Investment Authority (QIA), the property arm of Qatar’s sovereign wealth fund said on Wednesday. Diar, which had been Al Khaliji’s largest shareholders, moved 61.9 million shares in Qatar’s sixth-largest bank to QIA on Tuesday, without providing further details.
Based on Al Khaliji’s closing price on Tuesday, the stock was worth 1.35 billion riyals ($370.9 million), according to Reuters calculations………………………………………..Full Article: Source

Sovereign funds bet big on Indian commercial realty

Posted on 06 January 2015 by VRS  |  Email |Print

The new year could well turn out to be a big one for the commercial real estate sector as $1-1.5 billion or up to Rs 10,000 crore could get invested in rent-yielding assets like offices and malls by large sovereign and private equity funds alone.
Sovereign/pension funds with deep pockets like GIC, Canada Pension Plan Investment Board (CPPIB), Abu Dhabi Investment Authority (ADIA), Qatar Investment Authority (QIA), dutch pension fund APG and bigger foreign funds like Blackstone, Brookfield, Xander would vie for at least 15-20 million square feet of assets in 2015, say sources………………………………………..Full Article: Source

Singapore Wealth Fund GIC Bets on India Real Estate

Posted on 02 January 2015 by VRS  |  Email |Print

In a sign that Indian real estate is back on the map for international investors, Singapore’s sovereign wealth fund is making a second bet on the sector in a month. GIC Pte. Ltd., with over $100 billion of assets under management, said that it plans to buy a controlling stake in Mumbai-based real estate firm Nirlon Ltd. for around $200 million, according to a press release late Tuesday.
Earlier this month, GIC had entered into a joint venture with Indian firm Vatika Group to develop two residential projects in the suburbs of Delhi. “GIC is confident of India’s growth potential over the long term,” Loh Wai Keong, co-head Asia at GIC Real Estate, had said in a statement at the time………………………………………..Full Article: Source

Singaporean sovereign wealth fund beefs up global property portfolio

Posted on 02 January 2015 by VRS  |  Email |Print

Singapore’s GIC Pte Ltd, through international affiliates, recently invested in several property ventures around the world in an effort to achieve significant presence in various foreign markets. One of the fund’s latest investments include an agreement to acquire IndCor Properties, an industrial real estate company based in Chicago, from Blackstone Group LP, in a deal worth USD8.1 billion.
According to the Singaporean Business Times, IndCor owns nearly 11 million sqm of warehousing and distribution spaces in the United States. The company was formed by Blackstone in 2010 and currently operates in 23 states. The acquisition by GIC is expected to conclude in the first quarter next year………………………………………..Full Article: Source

New Mexico earmarks $400m for real estate fund commitments in 2015

Posted on 19 December 2014 by VRS  |  Email |Print

The New Mexico State Investment Council is to allocate $300m-400m (€320.9m) to real estate funds next year. Vince Smith, deputy investment officer for New Mexico, said most of the capital will be placed in a non-core strategy.
“I think that we are pretty set with our core manager lineup,” Smith said. New Mexico will focus on offshore strategies to complement its US-based portfolio, with additional capital allocated to investments Europe………………………………………..Full Article: Source

Sovereign funds eye Mumbai’s commercial complex

Posted on 19 December 2014 by VRS  |  Email |Print

Global pension and sovereign funds including Canada Pension Plan Investment Board (CPPIB), APG, Abu Dhabi Investment Authority are in talks with private equity firm Milestone Capital to acquire 1.12-million-sq-ft commercial property 247 Park in Mumbai, two persons familiar with the development said. The deal, expected to be valued over Rs 1,000 crore, indicates the rising appetite for income-producing office properties.
Sovereign wealth fund owned by the emirate of Abu Dhabi, according to persons mentioned above, is looking to acquire the asset independently. Last year, ADIA had committed $200 million to Kotak Realty Fund to invest in Indian real estate. Kotak Realty has denied holding any talks for the asset 247 Park on behalf of ADIA………………………………………..Full Article: Source

GIC to develop two projects near Delhi

Posted on 18 December 2014 by VRS  |  Email |Print

Sovereign wealth fund GIC continues to have a strong appetite for real estate - turning its sights on India for its latest deal. It has entered into a joint venture with Indian property firm Vatika Group to develop two residential projects in Gurgaon near the nation’s capital New Delhi. The two firms said in a joint statement yesterday that the projects will meet demand for high-quality residential units.
Vatika, which is involved in a wide spectrum of real estate, including residential, commercial, township and facilities management projects, will be the developer. The two projects have a development potential of more than 2.3 million sq ft and are set to generate revenues of some 20 billion rupees (S$420 million) when completed by the 2018-2019 financial year. No other financial details were made known………………………………………Full Article: Source

India HDFC’s fund targets raising $500 million for real estate: sources

Posted on 18 December 2014 by VRS  |  Email |Print

A private equity fund set up by Housing Development Finance Corp Ltd (HDFC.NS), India’s biggest mortgage lender, is targeting raising $500 million to invest in residential real estate projects, said people directly involved in the process.
HDFC Property Fund plans to raise part of the funding from investors, including Government of Singapore Investment Corp (GIC), investment firm Temasek Holdings and Oman’s State General Reserve Fund, one of the people said. HDFC, GIC, Temasek and Oman’s State General Reserve Fund declined to comment. The sources declined to be named as the fundraising plan is not public yet………………………………………Full Article: Source

Qatar Fund Acquires HSBC’s London Base From Korean Pension Fund

Posted on 17 December 2014 by VRS  |  Email |Print

Qatar Investment Authority, the sovereign-wealth fund seeking to gain control of London’s Canary Wharf financial district, bought the headquarters of HSBC Holdings Plc from the National Pension Service of Korea.
JPMorgan Chase & Co., which advised NPS, announced the sale of 8 Canada Square in Canary Wharf in a statement yesterday without giving the price. Qatar paid about 1.2 billion pounds ($1.9 billion), according to a person with knowledge of the deal who asked not to be identified because the information is private…………………………………..Full Article: Source

Singapore’s GIC forms venture with Vatika Group

Posted on 16 December 2014 by VRS  |  Email |Print

GIC Pte Ltd, Singapore’s sovereign wealth fund, formed a joint venture with property developer Vatika Group for two residential projects near New Delhi, the two firms said in a statement on Monday.
The projects in Gurgaon, to be developed by Vatika Group, are expected to be completed by financial year 2018-19 and are forecast to generate revenue in excess of 20 billion rupees ($319 million), they said……………………………………..Full Article: Source

Singapore’s GIC enters Indian residential property joint venture

Posted on 16 December 2014 by VRS  |  Email |Print

GIC has entered a joint venture on Indian residential housing.Singapore’s sovereign wealth fund said it agreed to co-invest in the development of two residential projects with local builder the Vatika Group.
The projects, on India’s Dwarka expressway in Gurgaon, are due for completion in 2018. GIC said the schemes were expected to generate IND2000 crore (€252m) in revenues once completed……………………………………..Full Article: Source

Why Sovereign Wealth Funds Need Private Equity

Posted on 16 December 2014 by VRS  |  Email |Print

According to the Sovereign Wealth Fund Institute (SWFI), direct sovereign wealth fund transactions from the 3rd Quarter of 2014 back 12 months, totaled US$ 203.61 billion. This is an unprecedented amount of sovereign wealth capital flowing toward direct investing in assets and companies. With that being said, sovereign wealth funds are constantly on the prowl, seeking various channels to manage their money on a risk-adjusted basis.
About 15 of the top 25 sovereign wealth funds ranked by assets under management, have an allocation to private equity funds. Private equity is an asset class, where sovereign wealth funds are able to put their capital to work on a long-term, illiquid basis. With increased volatility in U.S. equities, a realization of change with regard to U.S. interest rates and lower expected returns in public markets, public asset owners have augmented allocation to private markets……………………………………..Full Article: Source

National pension fund sells office building in London

Posted on 15 December 2014 by VRS  |  Email |Print

South Korea’s national pension fund said Sunday it has sold a prime office building in London to Qatar’s sovereign wealth fund, reaping a profit of 960 billion won (US$871 million).
The National Pension Service (NPS) said it sold the head office of global banking giant HSBC, which it acquired in 2009 following the 2008 global financial crisis, to the Qatar Investment Authority. The NPS didn’t disclose the sale price, simply saying it has recorded 960 billion won in earnings………………………………………..Full Article: Source

German Kauri, Swedish Apeiron join SWF in €300m German housing JV

Posted on 11 December 2014 by VRS  |  Email |Print

Kauri CAB Management and Apeiron Capital have teamed up with an unnamed sovereign wealth fund to invest in German residential property. The joint venture has invested €130m in a portfolio of 1,675 residential and 105 commercial units within 61 residential buildings in Germany.
The 120,000sqm Zeus portfolio, spread across Magdeburg and Berlin, was sold by Zentral Boden Immobilien (ZBI). The partnership, which has an initial starting equity capital of €100m, is aiming to build a €300m portfolio including leverage………………………………………..Full Article: Source

Singapore Sovereign Fund Bets Big on Trophy Real Estate

Posted on 09 December 2014 by VRS  |  Email |Print

Lim Chow Kiat, a 44-year-old man with a calm demeanor and a dimpled smile, is known as someone who doesn’t stray from his habitual ways. Friends and colleagues say Lim — group chief investment officer of GIC Pte, Singapore’s sovereign wealth fund — has kept his hair short and worn the same style of square, black-framed glasses for as long as they can remember.
“He probably looked exactly the same when he was a child,” says Lam Poh Min, who used to sit next to Lim before leaving GIC in 2004 to co-found Singapore-based Octagon Capital Management Pte, one of the first quant hedge funds in Asia………………………………………..Full Article: Source

Qatar fund and partner raise offer for Canary Wharf-owner Songbird

Posted on 05 December 2014 by VRS  |  Email |Print

Qatar’s sovereign wealth fund and a North American investor have upped their joint bid for Songbird Estates, the owner of London’s Canary Wharf financial district, with an offer that values the company at 2.6 billion pounds ($4.1 billion).
Songbird is the majority owner of the Canary Wharf estate, established about 25 years ago on former docks as a new financial zone. It is also a part owner of the landmark “Walkie Talkie” skyscraper in the City, London’s traditional business area………………………………………..Full Article: Source

Brookfield, Qatar raise bid to $4.6-billion in Canary Wharf deal

Posted on 05 December 2014 by VRS  |  Email |Print

The property arm of Canada’s Brookfield Asset Management and a Qatar investment fund have boosted their bid for the British company that controls Canary Wharf in a final effort to take control of Europe’s largest office development.
At the same time, the Qatari Investment Authority (QIA) will pay $1.8-billion (U.S.) for preferred shares that will give it 9 per cent of Brookfield Property Partners, which is controlled by Toronto-listed Brookfield Asset Management Inc. The deal is designed to give Brookfield, with the Qataris at its side, enough financial firepower to fund the British takeover attempt and possibly others as the two powerhouses roam the planet for investments………………………………………..Full Article: Source

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