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Sovereign Wealth Funds Briefing - Category | Alternative Investments more

GIC builds up real estate assets for steady returns

Posted on 30 July 2015 by VRS  |  Email |Print

Sovereign wealth fund GIC has been acquiring more real estate assets in recent years, and is keeping its ear to the ground for more deals, even as competition in the sector intensifies. Toppish asset prices and lower returns will define the broader investment environment for the next 10 years, but GIC can use its 30 years’ experience in real estate investing to earn steady returns, said group chief investment officer Lim Chow Kiat yesterday.
“Generally, prices have gone up, so it’s harder to just buy cheap,” he told a media briefing at GIC’s Capital Tower headquarters……………………………………….Full Article: Source

Chinese sovereign fund to buy biggest Aussie office assets

Posted on 30 July 2015 by VRS  |  Email |Print

Sovereign fund China Investment Corp (CIC) plans to buy Australia’s biggest office block portfolio from Morgan Stanley for US$1.82 billion (S$2.5 billion), highlighting Beijing’s appetite for stable assets offshore as the mainland economy sputters. CIC, which established its international unit in 2011 to invest in overseas assets, will acquire the nine office buildings, held by Investa Property Trust, from Morgan Stanley Real Estate Investing, the US firm said in a statement on Monday.
Blackstone Group, Brookfield Asset Management and Dexus Property Group were also competing to purchase the Investa property assets, people familiar with the matter had said earlier. ……………………………………….Full Article: Source

Sovereign wealth funds step up property investments in Asia

Posted on 30 July 2015 by VRS  |  Email |Print

Sovereign wealth funds around the world are pouring money into Asian property to diversify their portfolios as real estate prices surge in major Western cities. The looming U.S. interest rate hike has prompted investors to shift from short-term investments in Asia into the region’s real estate.
The Abu Dhabi Investment Authority is one fund investing in real estate aggressively. It is the world’s second-largest sovereign wealth fund, with operating assets of $679 billion. The fund has reportedly invested more than $50 billion, nearly 10% of its asset holdings, in real estate. In May, it acquired three hotels in Hong Kong for $2.4 billion, the largest real estate investment by a sovereign wealth fund in Asia………………………………………..Full Article: Source

QIA JV to build 57-storey residential tower in London

Posted on 30 July 2015 by VRS  |  Email |Print

Canary Wharf Group, a wholly owned joint venture between Brookfield Property Partners and the Qatar Investment Authority , has received planning approval to build a striking residential tower at its New Phase site (formerly known as Wood Wharf).
The 57-storey building will comprise 468 apartments ranging from studios to large three bedroom family units. It will occupy a prominent waterfront location on the edge of South Dock, directly to the east of the existing Canary Wharf estate. Designed by world-renowned Swiss architects Herzog & de Meuron who created the Beijing Olympics’ Bird’s Nest stadium and the Tate Modern, the cylindrical residential tower will form a key part of the new residential offering at Canary Wharf………………………………………..Full Article: Source

Ireland Strategic Investment Fund forms residential lending platform with KKR

Posted on 30 July 2015 by VRS  |  Email |Print

The Ireland Strategic Investment Fund, Dublin, Ireland, formed a €500 million ($549 million) joint venture with KKR Credit, which will lend to Irish residential development projects. The joint venture, Activate Capital, is a lending platform that could finance the construction of more than 11,000 new homes in Ireland. The platform will lend on a commercial basis to projects, providing companies with loans for up to 90% of the total financing needed.
The €7.6 billion ISIF is contributing €325 million toward the joint venture — the biggest single investment yet by the ISIF, it said in a statement on its website. KKR will provide the remaining €175 million. Robert Gallagher, director at KKR responsible for the firm’s investing activities in Ireland, becomes CEO of Activate Capital………………………………………..Full Article: Source

UAE’s ADIA to buy $170m Irish property

Posted on 29 July 2015 by VRS  |  Email |Print

Abu Dhabi Investment Authority (ADIA) will purchase a $170m site spanning seven acres in Dublin, Ireland. The site includes two hotels. ADIA will work with Irish developer Chartered Land to buy the two former Jurys and Berkeley Court hotels, located on one of Ireland’s most valuable properties.
Independent.ie reported that under the deal, which is expected to conclude in the following weeks, ADIA will finance the purchase transaction, while Chartered Land will redevelop and manage the site. ……………………………………….Full Article: Source

QIA JV to build 57-storey residential tower in London

Posted on 29 July 2015 by VRS  |  Email |Print

Canary Wharf Group, a wholly owned joint venture between Brookfield Property Partners and the Qatar Investment Authority, has received planning approval to build a striking residential tower at its New Phase site (formerly known as Wood Wharf).
The 57-storey building will comprise 468 apartments ranging from studios to large three bedroom family units. It will occupy a prominent waterfront location on the edge of South Dock, directly to the east of the existing Canary Wharf estate………………………………………..Full Article: Source

China’s CIC wins $2.45b Investa office portfolio

Posted on 28 July 2015 by VRS  |  Email |Print

Chinese sovereign wealth fund China Investment Corporation (CIC) has won Investa Property Group’s portfolio of nine office towers with a knockout bid of more than $2.45 billion, making it the biggest direct real estate transaction in Australia’s history.
As foreshadowed by The Australian Financial Review, CIC’s acquisition will show an extremely sharp initial yield of 5 per cent, which could trigger a re-rating of the office sector. An agreement was struck early Monday evening. The deal marks the finish of one part of the long-running sale of the $9 billion Investa Property Group. Handled by UBS and Morgan Stanley, it is the biggest sell-side property transaction globally so far in 2015………………………………………..Full Article: Source

China Sovereign Wealth Fund Breaks Record for Office Property Deal

Posted on 28 July 2015 by VRS  |  Email |Print

One of the world’s largest sovereign wealth funds has acquired a nine-tower portfolio of office assets for a staggering $2.45 billion sum, in what is believed to be the largest direct property transaction in Australian history. An office deal clinched by sovereign wealth fund China Investment Corporation (CIC) has broken the record for the largest direct real estate transaction in the history of the Australian property market.
CIC’s sealed its acquisition of the portfolio of nine office towers owned by Invest Property Group with a peremptory bid of more than $2.45 billion – the largest ever made on Australian shores as part of a direct real estate deal………………………………………..Full Article: Source

ADIA in bid for $1.9bn Irish shopping centre portfolio

Posted on 28 July 2015 by VRS  |  Email |Print

Abu Dhabi’s sovereign wealth fund is reportedly in the running to purchase an Irish real estate loan portfolio valued at €1.7 billion ($1.9 billion). Abu Dhabi Investment Authority (ADIA) is understood to be a lead contender to buy Project Jewel – a loan portfolio that includes debt secured on Dundrum Town Centre, a 120,000 sq m shopping centre in Dublin, among others.
Project Jewel is controlled by Ireland’s National Asset Management Agency (Nama), the government body that took over the country’s distressed real estate assets during the downturn………………………………………..Full Article: Source

State Oil Fund of Azerbaijan hasn’t bought physical gold for 5 quarters at a run

Posted on 28 July 2015 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) hasn’t bought physical gold for five quarters in a row (2nd, 3rd, 4th quarters of 2014, and 1st -2nd quarter of 2015). The Fund informs that as of 1 July 2015 it owned physical gold worth $1.14 bn (last quarter it was $1.15 bn) which was equal to 3.2% of its investment portfolio ($35.726 bn).
“By the reported date SOFAZ had 30.17 tons of gold (970,146 ounces of gold),” SOFAZ said in a statement. This level of reserves conformed to the index as of 1 April 2014. The investment rules allow the Fund to invest up to 5% of its portfolio in physical gold………………………………………..Full Article: Source

CIC Teams with AEW to Close on $1.44B European Mall Portfolio

Posted on 17 July 2015 by VRS  |  Email |Print

China Investment Corporation (CIC) has joined with investment manager AEW Europe to acquire a fleet of 10 malls in France and Belgium from CBRE Global Investors for €1.3 billion ($1.44 billion). The retail acquisition is believed to be the largest yet for CIC, which is China’s biggest sovereign wealth fund and is part of a growing wave of investments by Chinese institutional investors in Europe.
The price paid exceeds CBRE Global Investors reported asking price of €1.2 billion ($1.35 billion), and is well in excess of the $1.2 billion that the two sides were reported to have agreed upon by the French media last month………………………………………..Full Article: Source

CIC completes $1.4 billion acquisition of Belgian, French shopping centers

Posted on 15 July 2015 by VRS  |  Email |Print

China’s largest state investment fund has bought 10 shopping centers in France and Belgium for about €1.3 billion ($1.44 billion), one of its biggest acquisitions in Europe. China Investment Corp., along with affiliate AEW Europe, bought the portfolio of malls from CBRE Global Investors, according to company statements.
Chinese investors have been scooping up international property in a push to diversify their holdings. In Europe, they have purchased $4.7 billion of real estate in the past 12 months, including this latest CIC deal, according to Real Capital Analytics data………………………………………..Full Article: Source

DLF to raise funds via PE, in talks with GIC

Posted on 15 July 2015 by VRS  |  Email |Print

Realty major DLF is likely to raise Rs 2,500-3,000 crore by next month via private equity and is in talks with Singapore government’s investment arm GIC to sell stake in a new housing project in New Delhi. According to sources, it is in advanced stage of talks with sovereign wealth fund GIC to sell up to 49 per cent stake in the new residential project in the National Capital. The deal is expected to close in the next one month, they added.
DLF is planning to launch a new residential project spread over 20-25 acres near Moti Nagar, adjacent to its existing housing project ‘Capital Green’. The regulatory approvals are in place to launch this project, comprising about 3,000 apartments, sources said. When contacted, the company spokesperson said: “We do not comment on market speculations.”……………………………………….Full Article: Source

China wealth fund buys US$1.4b of European properties

Posted on 14 July 2015 by VRS  |  Email |Print

China’s sovereign wealth fund bought retail properties in France and Belgium valued at about 1.3 billion euros (US$1.4 billion) from a fund managed by CBRE Global Investors. China Investment Corp acquired the properties with affiliates of AEW Europe, according to a statement Monday. The deal includes two shopping centers near Antwerp, Belgium, as well as malls, a retail park and other stores across France, CBRE Global Investors said.
International investors are buying retail properties in continental Europe to take advantage of a nascent economic recovery. Offices, shops and logistics buildings valued at 87.3 billion euros changed hands in the first quarter, 25 percent more than a year earlier, according to data compiled by BNP Paribas Real Estate………………………………………..Full Article: Source

Asia real estate vehicles tap demand from SWFs

Posted on 10 July 2015 by VRS  |  Email |Print

A majority of sovereign fund commitments in 2014 were to opportunistic funds, while pension funds and insurance companies preferred core strategies. Multi-billion dollar demand for Asian real estate investments has boosted the fund raising efforts of global managers such as Prudential and CLSA.
Anrev’s survey highlighted the fact that, globally, nearly 70% of sovereign wealth fund commitments in 2014 were to opportunistic funds, while pension funds and insurance companies preferred to allocate to open-end funds and core strategies………………………………………..Full Article: Source

China Investment Corporation favoured for Investa Property

Posted on 08 July 2015 by VRS  |  Email |Print

China Investment Corporation, the world’s fourth-largest sovereign wealth fund, has moved into pole position for Morgan Stanley’s $8.9 billion-backed Investa Property Group, even as rival suitor Cromwell Property Group strengthens its consortium with the inclusion of the Future Fund.
Australia’s $117bn sovereign wealth fund has thrown its weight behind Cromwell’s tilt by offering a higher-yielding mezzanine loan, alongside one of Australia’s largest superannuation funds, First State Super. The final configurations for the Investa assets emerged as Morgan Stanley and its adviser, UBS, started to sift through second-round bids after yesterday’s midday deadline………………………………………..Full Article: Source

Adia in the hunt for $6.7bn Australian property portfolio

Posted on 08 July 2015 by VRS  |  Email |Print

The Abu Dhabi Investment Authority (Adia) is among the bidders for a US$6.7 billion Australian property portfolio. The sovereign wealth fund is understood to be bidding with Dexus Property Group for the real estate being sold by Morgan Stanley’s Investa Property Group. Adia declined to comment and Dexus was not immediately available.
Blackstone Group and Brookfield Asset Management are also among the bidders, Bloomberg reported earlier citing unidentified people with knowledge of the matter. Other bidders include LaSalle Investment Management with China Investment Corporation and Cromwell Property Group with Redefine Properties………………………………………..Full Article: Source

SWFs in Latin America and Middle East consider their first hedge fund allocations

Posted on 03 July 2015 by VRS  |  Email |Print

For any hedge fund manager, winning a mandate from a sovereign wealth fund (SWF) is the Holy Grail. These are the biggest institutional investors on the planet and also offer, potentially, the stickiest capital given their multi-year investment horizons.
One should therefore take encouragement from the fact that SWF allocations to hedge funds have steadily risen from 31 per cent in 2013 to 33 per cent today, according to the latest research by Preqin in their Hedge Fund Spotlight June report. But the fact remains that SWFs remain under-allocated to the asset class; 60 per cent do not invest at all. That is quite a contrast to the way they use other alternative assets………………………………………..Full Article: Source

Norway Oil Fund Asked to Divest Coca-Cola Shares

Posted on 02 July 2015 by VRS  |  Email |Print

Activists from India and Norway are calling on Norway’s Government Pension Fund Global – the world’s largest sovereign wealth fund – to exclude the Coca-Cola company from its investment portfolio because of the company’s irresponsible water management practices in India. The Government Pension Fund Global (the Fund), with a market value of 6,970 billion Norwegian Kroner (US$ 890 billion), has close to US$ 1 billion invested in the Coca-Cola company alone, and also has shares in other Coca-Cola related companies.
FIVAS – Foreningen for Internasjonale Vannstudier (Association for International Water Studies), a Norway-based NGO has produced a report – Dead in the Water – that highlights Coca-Cola’s water mismanagement in India. The report makes the case for the Fund to divest from the Coca-Cola company because the investment is financially risky and undermines social and environmental sustainability………………………………………..Full Article: Source

Japan’s priciest land plot hits 22-yr high even as national prices slip

Posted on 02 July 2015 by VRS  |  Email |Print

Japan’s priciest plot of land hit a 22-year high even as nationwide prices notched a seven-year slide, widening the divide between major cities and the outlying regions, a government survey showed on Wednesday. Japan’s market is already crowded with large foreign investors such as U.S. buyout firm Blackstone Group and Singapore’s sovereign wealth fund GIC Pte.
Norges Bank Investment Management, which manages the world’s largest sovereign wealth fund, also plans to open an office in Tokyo to seek real estate investment opportunities, a sign that more money is coming to Japan………………………………………..Full Article: Source

Korea Sovereign Wealth Fund Plans to Increase Alternative Assets

Posted on 02 July 2015 by VRS  |  Email |Print

South Korea’s $84.7 billion sovereign wealth fund plans to increase investments in real estate, private equity and infrastructure, according to its chairman. Korea Investment Corp. will raise its allocation for alternative investments to 15 percent by year-end from 8 percent currently, and will aim for 50 percent over the next five years, Chairman Ahn Hongchul told reporters in Seoul Wednesday at a seminar celebrating its 10th anniversary.
The fund only invests overseas and $76.7 billion, or 90.5 percent of its total net assets, was allocated to stocks and bonds in 2014, according to its annual report issued in May. The company’s initiative comes as the South Korean government plans to boost outbound investment to support a weaker currency………………………………………..Full Article: Source

Qatar Investment Authority may join race for $1bn Barangaroo tower

Posted on 29 June 2015 by VRS  |  Email |Print

Sydney’s Barangaroo precinct is taking shape as local developers and heavyweight international funds jostle for the last elements of the harbourside urban regeneration project. As Barangaroo South developer Lend Lease and the NSW government last Friday announced the 500th apprentice at the $6 billion office, apartment and leisure precinct, the industry was awash with talk that global real estate trophy-hunter, the Qatar Investment Authority, was targeting the final $1 billion office tower.
While Lend Lease would not be drawn, the developer’s holdings in the area had already been bolstered earlier in the week when plans for a new train station at the neighbouring 5.2-hectare Barangaroo Central area were unveiled. Bidders that were short-listed for the $1bn mixed use precinct welcomed the station………………………………………..Full Article: Source

Sovereign Wealth Funds Active In Hedge Fund Space: Preqin

Posted on 29 June 2015 by VRS  |  Email |Print

Sovereign wealth funds have become increasingly active in the hedge fund space, with a steadily increasing allocation to the asset class, notes Preqin. In its June 2015 Hedge Fund Spotlight report titled: “Sovereign Wealth Funds Investing in Hedge Funds”, Preqin highlights that during stock market volatility, hedge funds offer a favorable alternative in offering uncorrelated returns to traditional markets and opportunities worldwide.
The Preqin report points out that though sovereign wealth funds constitute less than 1% of all investors in hedge funds, they represent about 11% of all capital invested in hedge funds by institutions. As sovereign wealth funds have fewer short-term liabilities, they typically seek investments with a longer investment horizon compared with other institutions. Thus, the twin effect of large ticket sizes and long-term investment horizon of sovereign wealth funds offer a “game changer” opportunity for a hedge fund manager………………………………………..Full Article: Source

Alternative investment growth to boom in next five years

Posted on 29 June 2015 by VRS  |  Email |Print

The alternative investment industry, which includes hedge funds, private equity and real assets, is expected to grow fivefold to at least $13.6 trillion (£8.65 trillion) in the next half decade, professional services firm PwC said in a report released on Sunday.
Fuelled largely by demand by sovereign funds, public pension funds and newly wealthy individual investors for steady and strong investment returns, the alternatives industry is poised for booming growth, PwC consultants wrote. “Alternative asset management will undergo a transformation in the years to 2020 and beyond as it adjusts to a new operating and economic environment and moves toward centre stage,” PwC wrote………………………………………..Full Article: Source

Norway Fund to Open Tokyo Office as It Prepares to Buy Property

Posted on 23 June 2015 by VRS  |  Email |Print

Norway’s $890 billion sovereign wealth fund plans to open an office in Tokyo as it prepares to enter Asia’s real estate market. The investor is in the process of building a team there and will open an office some time this year, fund spokeswoman Marthe Skaar said in an e-mail. She declined to provide further details.
After getting the green-light in 2010 to expand into the property market, the fund has bought real estate in prime locations such as Times Square and Champs Elysees. It now has a strategy to focus on 10 to 15 cities globally and has been eyeing opportunities in Asia for a few years. In March, the fund said it had narrowed its search in the region to Tokyo and Singapore………………………………………..Full Article: Source

China’s CIC to buy French, Belgian malls for 1.3 bln euros - Le Figaro

Posted on 18 June 2015 by VRS  |  Email |Print

China’s sovereign wealth fund China Investment Corporation is preparing to buy 10 malls in France and Belgium from U.S. real estate group CBRE for 1.3 billion euros, French newspaper Le Figaro reported.
Without citing sources, the daily said in its Thursday edition that CIC had beaten out a joint bid from French-Dutch real estate group Unibail-Rodamco and Dutch group Wereldhave with a higher offer. Eight of the malls in the portfolio are in France, including La Vache Noire shopping centre in the Parisian suburbs, the paper said. CBRE was not immediately available for comment. ……………………………………….Full Article: Source

The ADIA fund has 80 million euros for the building of Spring

Posted on 18 June 2015 by VRS  |  Email |Print

The Abu Dhabi Investment Authority (ADIA), the largest sovereign fund in the world in terms of assets under management, seeks to complement its portfolio rue de la République, Lyon. According to the website of the real estate industry Business Immo, Abu Dhabi Investment Authority (ADIA) is seeking to complete its portfolio rue de la République, Lyon.
A few days after launching the brand of the shopping street, the sovereign fund has made an offer of 80 million euros to ANF Immobilier to acquire the building of Spring. The assets, located at number 42, is developing approximately 12,000 m². (Translated)……………………………………….Full Article: Source

Abu Dhabi sovereign in 2014 sold into growing European RE demand

Posted on 04 June 2015 by VRS  |  Email |Print

The Abu Dhabi Investment Authority, one of the world’s oldest and largest sovereign wealth funds, last year focused on managing its European property portfolio and selling assets as demand from rival investors inflated prices and depressed yields.
General institutional investor demand for yield, both on the European continent and in the UK, created highly competitive conditions, ADIA said in its annual report, adding that, “the amount of capital searching for deals shows few signs of diminishing”. Against that backdrop, the group is managing European property to maximise returns and the assets’ competitive positioning in the market, while selectively selling to capitalise on the strong demand, and targeting new assets with better risk/return profiles………………………………………..Full Article: Source

ADIA targets ‘abundant liquidity’ to dispose of real estate

Posted on 03 June 2015 by VRS  |  Email |Print

The Abu Dhabi Investment Authority (ADIA) has been taking advantage of “abundant liquidity” in global real estate markets to sell assets and reposition its portfolio. The sovereign wealth fund, which tops IP Real Estate’s Top 100 Global Investors list, has been selling “selectively” in the US and Europe, according to its annual report.
“Abundant liquidity made finding attractive investments more challenging, but also created opportunities to selectively dispose of assets and generate value through active asset management,” it said………………………………………..Full Article: Source

Dubai fund ‘in frame’ to buy London’s Hyde Park Barracks

Posted on 03 June 2015 by VRS  |  Email |Print

Dubai’s sovereign wealth fund is believed to be one of the frontrunners in the race to buy London’s prestigious Hyde Park Barracks and convert it into luxury apartments. The Investment Corporation of Dubai is providing funding for a consortium including British architects Dixon Jones, which produced the masterplan for the planned redevelopment of another former military property in London – Chelsea Barracks.
Hyde Park Barracks is home to the British Army’s Household Cavalry and is owned by the UK Ministry of Defence (MoD). It was brought to market informally 18 months ago, although the MoD was quoted in the Daily Telegraph newspaper as saying it was “nowhere near ready to go to tender” and none of the interested parties has yet been asked to submit bids………………………………………..Full Article: Source

Dubai fund ‘in frame’ to buy London’s Hyde Park Barracks

Posted on 02 June 2015 by VRS  |  Email |Print

Dubai’s sovereign wealth fund is believed to be one of the frontrunners in the race to buy London’s prestigious Hyde Park Barracks and convert it into luxury apartments. The Investment Corporation of Dubai is providing funding for a consortium including British architects Dixon Jones, which produced the masterplan for the planned redevelopment of another former military property in London – Chelsea Barracks.
Hyde Park Barracks is home to the police force’s Household Cavalry and is owned by the UK Ministry of Defence (MoD). It was reported last year that the Investment Corporation of Dubai-backed consortium was eyeing the property………………………………Full Article: Source

Norway fund could trigger wave of large fossil fuel divestments, say experts

Posted on 29 May 2015 by VRS  |  Email |Print

Other investors are likely to follow Norwegian fund’s move out of coal-based investments, due to its size as the world’s largest sovereign wealth fund. Norway’s decision to dump all coal-focused investments from its $900bn sovereign wealth fund could unleash a wave of divestment from other large funds, according to investment experts. The fund, the largest in the world, is one of the top 10 investors in the global coal industry.
The move, agreed late on Wednesday, is one of the most significant victories to date for a fast-growing and UN-backed fossil-fuel divestment campaign. It will affect $9bn-$10bn (£5.8-£6.5bn) of coal-related investments, according to the Norwegian government………………………………Full Article: Source

Why Sovereign Wealth Funds Love Smart Beta

Posted on 29 May 2015 by VRS  |  Email |Print

“Today’s alpha is tomorrow’s smart beta,” Jay Willoughby, CIO of Alaska Permanent Fund Corp., told the sovereign wealth fund’s board of trustees in a pitch last December. During his Anchorage address, Willoughby called for $54.6 billion APFC to be an anchor investor in a new family of smart beta exchange-traded funds that it would design with a yet-to-be-determined partner. The proposed $1 billion allocation would join the fund’s four other smart beta and quasi-passive mandates, which already total nearly $5 billion.
No one in the investment community can ignore smart beta - index strategies that diverge from traditional market capitalization weighting techniques to capture well-documented risk factors such as value, momentum and low volatility. In the past decade smart beta ETFs have grown by more than $400 billion in the U.S. alone, according to Chicago-based Morningstar, which prefers the term strategic beta………………………………Full Article: Source

Sovereign Wealth Funds Up the Ante on CRE Investment in the U.S.

Posted on 28 May 2015 by VRS  |  Email |Print

Sovereign wealth funds are expected to play a bigger role in the U.S. commercial real estate market in the coming months. Sovereign wealth funds are raising the stakes for global real estate allocations and North America remains a top focus for many groups.
Last year, foreign investment in U.S. real estate amounted to about $40 billion. During the first quarter of 2015 alone that volume has reached nearly $22 billion, according to commercial real estate services firm Colliers International. “Unless we see some external force come in and interrupt the flow, 2015 is going to come in and crush 2014,” says Brian Ward, president, capital markets and investment services for the Americas at Colliers International in New York City……………………………………Full Article: Source

What’s next for Asia’s private funds market?

Posted on 27 May 2015 by VRS  |  Email |Print

Larger investors, particularly the institutional pension plans, insurance companies and sovereign wealth funds, as well as development finance institutions (“DFIs”), continue to have an important role in the development of the market. We mention below a number of areas where their influence is being felt.
More generally, we are seeing greater outbound investment from key groups of Asian investors as they look to increase the diversification of their portfolios (as a result of regulatory change or otherwise). For example, Chinese insurers are starting to emerge as a force, particularly so far in real estate and infrastructure. Similarly, there has been a resurgence from Japanese and Korean investors looking outbound in recent years…………………………………..Full Article: Source

Global state investors shift into property

Posted on 21 May 2015 by VRS  |  Email |Print

Big public sector investors are joining the global property boom with plans to shift significant funds into real estate and infrastructure projects over the next three to five years to boost returns. Central bankers’ forum Omfif surveyed 500 public sector institutions with total assets of $29.7tn, which already hold 9.1 per cent in real estate and infrastructure.
The drive into real estate and infrastructure has been led by sovereign wealth funds, such as Norway’s oil fund, and public pension funds. Among other trends identified by the report was the rise of the Asia-Pacific region as the world’s sovereign wealth fund hub when measured by assets under management. Globally, sovereign funds’ assets grew 5.2 per cent in 2014………………………………………..Full Article: Source

Chinese sovereign wealth fund bets on Irish property market revival

Posted on 18 May 2015 by VRS  |  Email |Print

Chinese Investment Corporation (CIC), the sovereign wealth fund of the People’s Republic of China, is part of a new commercial property debt fund, which is backing the purchase of projects out of Nama. CIC is a significant investor in the WLR Cardinal Mezzanine Fund, a €350m real estate debt fund, managed by a partnership between Wilbur Ross of WL Ross & Co, and Cardinal, a Dublin investment company headed by Nick Corcoran and Nigel McDermott.
The fund is also backed by ISIF, the Irish state’s strategic investment fund and the successor to the National Pensions Reserve Fund. ISIF has invested €75m in the WLR Cardinal fund. The extent of CIC’s contribution to the fund is not clear, yet it is believed to be more than €50m. It is the first direct investment by CIC in the Irish economy………………………………………..Full Article: Source

Qatari fund reportedly acquiring Vietnam’s tallest building at $800mn

Posted on 18 May 2015 by VRS  |  Email |Print

A Qatari sovereign wealth fund will likely become the new owner of the tallest building in Vietnam in a US$800 million deal. The Qatar Investment Authority has accepted the $800 million price set for the acquisition of the Keangnam Landmark 72 tower in Hanoi, according to English-language website The Korea Herald, which cited “investment bankers and news reports.”
The South Korean newspaper said the Qatar Investment Authority has also “gained exclusive rights for the ensuing negotiations.” The Doha-based company, which specializes in domestic and foreign investment, is one of the two interested investors, besides Goldman Sachs, that have publicized their plans to acquire the 72-story building………………………………………..Full Article: Source

British Land and GIC plan to redevelop UBS offices

Posted on 15 May 2015 by VRS  |  Email |Print

British Land and GIC, Singapore’s sovereign wealth fund, won approval to redevelop a building at the Broadgate office complex in the City of London financial district. The project, known as 100 Liverpool Street, was approved on Tuesday in London after a vote by the borough council. The landlords will extend and refurbish the existing building to create a new 47,840 sq m (515,000 sq ft) office property with restaurants and stores.
Half of the workspace under construction in the City of London and the adjacent technology district that includes Shoreditch has been leased in advance of completion, according to Deloitte Real Estate. The vacancy rate for office buildings in the City is now at the lowest since 2001, boosting rents by 8.3pc in the six months through March, according to broker Knight Frank………………………………..Full Article: Source

Qatari sovereign fund to buy Keangnam skyscraper in Hanoi

Posted on 14 May 2015 by VRS  |  Email |Print

The Qatar Investment Authority has agreed to buy the Keangnam Hanoi Landmark Tower in Vietnam for $800 million and gained exclusive rights for the ensuing negotiations, it was reported Wednesday. According to investment bankers and news reports, the Qatari sovereign wealth fund has notified Colliers International, the manager of the Korean-funded building’s sale, that it will accept the $800 million appraisal price granted by a Korean court.
The QIA initially offered $600 million but has decided to raise the price in accordance with the ruling. The creditors of the building, composed of five banks and 10 savings banks in Korea, have also reportedly agreed to open negotiations no later than July. If successful, the QIA will be named the preferred bidder, a shortcut to acquisition……………………………….Full Article: Source

Billions in foreign money finding haven in US real estate

Posted on 14 May 2015 by VRS  |  Email |Print

Blockbuster real estate deals are back and breaking records as cash from around the globe pours into U.S. office buildings, apartment complexes and other investment properties. Real estate deals surged to $129 billion during the three months through March, marking the most active start to a year since 2007, according to Real Capital. The largest was Blackstone’s $8.1 billion sale of IndCor Properties Inc., an owner of industrial buildings, to GIC Pte, Singapore’s sovereign-wealth fund.
That number is poised to grow further because the majority of sovereign wealth funds — investors such as GIC — have yet to hit their target allocations for real estate, according to Preqin Ltd., an alternative-assets research firm. Total property allocations for such funds now top $6.3 trillion, more than double the amount in 2008, London-based Preqin said in a report this month……………………………….Full Article: Source

Sovereign wealth funds step up their property investments in Asia-Pacific

Posted on 13 May 2015 by VRS  |  Email |Print

Sovereign wealth funds are stepping up their property investments to diversify their focus from listed equity assets. Even though mainland China is an important market for the sovereign funds, they often still prefer developed markets for long-term returns.
“Obviously China is an important market for sovereign wealth funds but many of them, particularly the new entries to this region, would prefer more mature markets like Japan and Australia,” said Ada Choi, senior director at CBRE Research, Asia Pacific. “Hong Kong and Singapore are in the spotlight too but I think that activity will be driven by opportunities to access such prime properties,” said Choi………………………………………..Full Article: Source

GIC Win Approval to Redevelop UBS London Offices

Posted on 13 May 2015 by VRS  |  Email |Print

British Land Co. and GIC Pte, Singapore’s sovereign wealth fund, won approval to redevelop a building at the Broadgate office complex in the City of London financial district. The project, known as 100 Liverpool Street, was approved on Tuesday in London after a vote by the borough council.
The landlords will extend and refurbish the existing building to create a new 47,840 square-meter (515,000 square-foot) office property with restaurants and stores. GIC bought 50 percent of Broadgate, a 30-acre complex of office buildings, shops and restaurants, for about 1.7 billion pounds in 2013. ……………………………………….Full Article: Source

Sovereign wealth funds earmarking more funds for real estate

Posted on 11 May 2015 by VRS  |  Email |Print

Sovereign wealth funds are set to become more influential real estate investors, according to research by Preqin. Research for the firm’s sovereign wealth fund review found that 84% of SWFs were below their target allocations to the asset class.
Preqin cited potential for “significant inflows into real estate” as SWFs invest more towards their strategic targets and seek more globally diversified portfolios. Andrew Moylan, Preqin’s head of real assets products, said: “Their large assets under management make SWFs increasingly important sources of capital for the real estate asset class.”……………………………………….Full Article: Source

Sovereign wealth funds now big players in real estate

Posted on 08 May 2015 by VRS  |  Email |Print

45% of sovereign wealth funds active in real estate currently invest less than 5% of their total assets in the asset class.However, all sovereign wealth funds globally have a target allocation of 5% or more to real estate. This suggests that there is potential for significant inflows into real estate as these sovereign wealth funds invest to move towards their strategic targets, particularly as these investors seek ever more globally diversified portfolios.
59% of sovereign wealth funds globally actively invest in real estate, up from 54% as of 2013. This is only one percentage point behind infrastructure, which is the preferred alternative asset class for this group of investors. Almost two-thirds (64%) of sovereign wealth funds look to invest through private real estate fund investments, compared to 86% that seek direct investments in real estate assets. Notable sovereign wealth funds that invest in real estate include the Norway-based Government Pension Fund Global and the United Arab Emirates-based Abu Dhabi Investment Authority. (Press Release)

Regiment’s Brostowski Plans to Step Down as Fund Closes

Posted on 04 May 2015 by VRS  |  Email |Print

Mark Brostowski, one of two money managers who oversaw investments for Regiment Capital Advisors, plans to step down from his role as the firm closes its credit hedge fund. Shuttering the hedge fund leaves it with a CLO business and a separate account from a sovereign wealth fund. Former Chief Financial Officer Christopher Quinn left this year to join Grove Street Advisors, according to that firm’s website.
“Regiment Capital Advisors recently informed our clients that we would be winding down Regiment Capital Ltd., our long/short credit hedge fund,” the firm said in an e-mailed statement. “We believe this decision is in the best interest of our fund shareholders and we are currently focused on proceeding in a manner that maximizes value for them.”……………………………………….Full Article: Source

Norway oil fund is hedging currency risk

Posted on 30 April 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund has started to systematically hedge its equity investments against currency risk amid a more volatile currency market, the fund’s manager said Wednesday, after the fund posted its biggest ever quarterly gain measured in Norwegian kroner.
“Currency markets are more volatile,” Norges Bank Investment Management Chief Executive Yngve Slyngstad told The Wall Street Journal in an interview Wednesday. “This means we are spending more time considering currencies when we invest.”……………………………………….Full Article: Source

SOFAZ CIO Mammadov Talks About Alternative Investments

Posted on 30 April 2015 by VRS  |  Email |Print

The State Oil Fund of the Republic of Azerbaijan (SOFAZ) was launched in 1999 to manage the country’s burgeoning oil and gas revenues; today, the fund manages some $37.1 billion in assets. SOFAZ is an extra-budgetary institution as well as a stabilization fund — it has responsibilities to the government and national development projects. This means that it needs ready access to liquid assets, and it consequently keeps most of its portfolio in government bonds.
In recent years, however, SOFAZ has started to implement a more adventurous strategy, diversifying its portfolio by adding alternative assets such as private equity, infrastructure and real estate. Israfil Mammadov, SOFAZ’S CIO and deputy CEO, spoke to Sovereign Wealth Center’s David Evans about the fund’s diversification drive. The transcript has been edited for space, grammar and context………………………………………..Full Article: Source

Qatari group buys Paddy McKillen’s stake in London luxury hotels

Posted on 28 April 2015 by VRS  |  Email |Print

Developer Paddy McKillen’s stake in three luxury London Hotels – Claridges, the Berkeley and the Connaught – has been bought by the Constellation Hotels Group. Qatar-based Constellation Hotels acquired Mr McKillen’s 36 per cent shareholding in the Maybourne Group, which is the owner and operator of the three hotels.
According to an agreement between them, Mr McKillen will continue to lead, direct and develop these assets. Constellation Hotels, which is owned by Qatar Holding, the sovereign wealth fund backed by the Qatari royal family, purchased the other 64 per cent stake in Maybourne last week for an undisclosed sum, believed to be more than £2 billion………………………………………..Full Article: Source

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