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Singapore’s GIC to invest in Indonesia property with Rajawali

Posted on 26 November 2014 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC and Indonesia’s Rajawali Group have agreed to jointly invest up to $500 million in equity in property projects in Indonesia, the two companies said in a statement on Tuesday.
The joint venture will look at sectors including office, retail, residential and mixed-use projects mainly in the central business district of Indonesian capital Jakarta, the statement said. Privately-owned Rajawali is one of Indonesia’s largest investment companies………………………………..Full Article: Source

Concierge Treatment: Private Equity Courts Mega Sovereign Funds and Pensions

Posted on 26 November 2014 by VRS  |  Email |Print

Over the past few years, sovereign wealth funds have gained a bit of leverage over private equity managers. Sovereign funds like Kuwait Investment Authority (KIA), China Investment Corporation (CIC) and Abu Dhabi Investment Authority (ADIA), have taken ownership stakes in headline private equity firms such as The Blackstone Group and The Carlyle Group.
As sapient sovereign funds and mega pensions boost the ranks of their internal private equity teams, they will be larger actors in co-investments and direct deals. According to the Sovereign Wealth Fund Transaction Database, in the first half of 2014, sovereign funds invested directly US$ 51.3 billion. This compares to US$ 42.6 billion in the first half of 2013………………………………..Full Article: Source

Norway’s oil fund, TIAA-CREF buy Washington property

Posted on 17 November 2014 by VRS  |  Email |Print

Norway’s sovereign wealth fund and U.S. financial services group TIAA-CREF have bought a Washington D.C. property in a deal valuing the site at $165 million, the fund said on Friday.
The fund bought a 49.9 percent stake for $82.3 million, which according to the statement has no debt, while TIAA/CREF bought the rest and will manage it on behalf of the partnership, it added. The property was bought from The Maritime Engineers Beneficiary Association, which will have a 99 year lease on it………………………………….Full Article: Source

Norway’s oil fund targets ‘forever’ horizon in real estate market

Posted on 17 November 2014 by VRS  |  Email |Print

Targeting an investment horizon of “forever”, Norway’s $860 billion oil fund plans to enter the Asian real estate market next year and aims to broaden its asset range to include anything from new developments to refurbishments, it said.
Stepping up its activity after a gradual start and aiming to invest around $8-$10 billion a year, the fund will also do more property deals on its own as it struggles to find partners with deep enough pockets, Karsten Kallevig, its real estate chief, told Reuters………………………………….Full Article: Source

China and Qatar buying London properties

Posted on 12 November 2014 by VRS  |  Email |Print

Sovereign wealth funds, forked out $8.9 billion for properties in London in the past year. London alone made up 44% of real estate investments of all foreign government money via their sovereign funds, according to research by Real Capital Analytics, a real estate research firm.
Qatar was the top spender, with Kuwait, China and Norway close behind. The Qatari sovereign wealth fund owns some of London’s most famous landmarks including the E.U.’s tallest building, the Shard, Harrods department store, and the Olympic village. In the last three years, the oil nation has spent $6.3 billion on London real estate………………………………………..Full Article: Source

CIC Says Private Equity to Benefit from China’s Overseas M&A Activity

Posted on 12 November 2014 by VRS  |  Email |Print

Private equity players are set to benefit as China’s private companies play a more important role in overseas acquisitions, said Linbo He, head of private equity at China Investment Corp., one of the world’s largest sovereign wealth funds.
Overseas mergers and acquisitions have long been dominated by Chinese state-owned enterprises given they have easy access to capital, are large in size and have resources and connections. But earlier this year Beiijing relaxed rules for private Chinese companies when they seek acquisitions abroad as the Asian country seeks to boost outbound investment………………………………………..Full Article: Source

UAE’s Aabar buys 5.1% stake in Egyptian developer

Posted on 10 November 2014 by VRS  |  Email |Print

Aabar Investments has acquired a 5.1 percent stake in Egypt’s second-largest listed real estate developer Palm Hills, Palm Hills said in a statement on Sunday. Palm Hills is valued on the Egyptian Stock Exchange at approximately 5.6 billion Egyptian pounds ($785 million), putting the value of the investment at around 285 million Egyptian pounds, according to Reuters calculations.
Aabar, a subsidiary of the United Arab Emirates’ sovereign wealth fund and run by the Abu Dhabi government, will have a representative on the board, the statement said………………………………………..Full Article: Source

GIC takes another bite of New Zealand real estate sector in joint venture for 5 malls

Posted on 07 November 2014 by VRS  |  Email |Print

Sovereign wealth fund GIC is increasing its interests in the real estate sector in New Zealand. It said on Thursday that it has entered into a joint venture partnership with Scentre Group to acquire five New Zealand malls with a combined gross value of NZ$2.1 billion.
GIC will own a 49 per cent interest in each of the five malls in New Zealand - Westfield Albany, Westfield Manukau, Westfield Newmarket, Westfield Riccarton and Westfield St Lukes. Scentre is New Zealand’s largest shopping centre operator, managing about nine shopping centres with annual sales in excess of NZ$2 billion………………………………………..Full Article: Source

Singapore fund buys into NZ Westfield shopping centres

Posted on 07 November 2014 by VRS  |  Email |Print

A billion dollar property deal by Singapore for a stake in some of New Zealand’s top shopping malls shows the super city model has made Auckland attractive to overseas investors, a property industry boss says. Singapore Government’s investment fund GIC has paid A$930 million ($1.1 billion) for 49 per cent ownership in five Westfield Shopping Centres as part of a joint venture with the malls’ owner, the ASX-listed Scentre Group.
Four of the five malls are in Auckland, at Albany, Manukau, Newmarket and St Lukes, with the other one in Riccarton in Christchurch. Scentre will continue to manage them. Its Glenfield, WestCity, Queensgate in Wellington and Chartwell in Hamilton are not involved in the deal………………………………………..Full Article: Source

Kuwait targets property lending with €1.2bn for Cale Street

Posted on 06 November 2014 by VRS  |  Email |Print

Kuwait Investment Authority is backing a new London-based property investment group Cale Street Partners with €1.2bn, aimed at building the sovereign wealth fund a new platform for real estate lending in Europe.
Cale Street was established in July by former Goldman Sachs’s global real estate principal investment head Edward Siskind, according to company filings. Just weeks later a separate entity, Cale Street Holdco Ltd, was established, whose board includes Martin Dore and Charles Magnay from KIA’s London-based investment arm, Kuwait Investment Office………………………………………..Full Article: Source

Qatar’s wealth fund says likes China’s property, among others

Posted on 05 November 2014 by VRS  |  Email |Print

Qatar’s sovereign wealth fund and one of the world’s most aggressive investors, Qatar Investment Authority, is keen to invest in China’s property, infrastructure and healthcare sectors, Chief Executive Ahmed Al-Sayed said on Tuesday.
The fund, which is estimated to have around $170 billion, also plans to invest between $15 billion and $20 billion in Asia in the next five years, Al-Sayed said………………………………………..Full Article: Source

Gulf Region Investment in U.S. Real Estate Surges 51%

Posted on 05 November 2014 by VRS  |  Email |Print

Persian Gulf investors from sovereign wealth funds to rich individuals increased spending on U.S. real estate, attracted by the pace of economic growth, a survey by Jones Lang LaSalle Inc. showed. Gulf Cooperation Council countries invested $1 billion in U.S. property this year, a 51 percent gain over the year-earlier period, according to the survey released in Dubai.
Wealth funds and institutional investors are spending more on real estate to diversify their holdings, Jones Lang said……………………………………….Full Article: Source

Real Estate Investments Less Attractive for SWFs, Report Says

Posted on 05 November 2014 by VRS  |  Email |Print

The shine may be wearing off for high-end real estate investments by sovereign wealth funds, according to a new report, a consequence of perceived market frothiness and increased competition for property assets. Sovereign wealth funds collectively closed $5.9 billion in real estate deals in the first half of this year, according to the report from Institutional Investor’s Sovereign Wealth Center. That was a 43% decline in value compared to the same period last year.
Sovereign funds, some of the largest of which are based in the Middle East, have become major players in real estate in recent years. Funds from Abu Dhabi and Singapore, for example, were the main backers of the $1.3 billion purchase early this year of the Time Warner headquarters building in New York………………………………………..Full Article: Source

Singapore fund buys half GMT’s waterfront properties

Posted on 04 November 2014 by VRS  |  Email |Print

NZX-listed Goodman Property Trust has sold a 49% stake in its Viaduct Harbour developments to a Singapore’s sovereign wealth fund. The move has been slammed by NZ First leader Winston Peters who says New Zealand’s own superannuation fund should be taking up such investments.
Goodman Property describes the move as a joint venture thaat may grow to $500 million eventually. The partnership will initially own a portfolio of assets valued at $313 million………………………………………..Full Article: Source

GIC makes first real estate move into NZ

Posted on 04 November 2014 by VRS  |  Email |Print

After clocking in an ultra-busy month in October, Singapore’s sovereign wealth fund GIC could be keeping up the shopping pace this month. On Monday, the state-linked fund with over US$100 billion of assets under management, revealed its maiden property foray into New Zealand by tying up with Goodman Property Trust (GMT) to co-invest in Auckland’s rapidly developing Viaduct Quarter.
The pact, with one of New Zealand’s largest listed property investor by market value, includes GMT’s existing viaduct property interests. GMT is managed by Goodman (NZ) Ltd………………………………………..Full Article: Source

Alaska sovereign eyes more in Europe after €280m Immochan deal

Posted on 04 November 2014 by VRS  |  Email |Print

Alaska’s sovereign wealth fund is looking to build a larger European real estate portfolio after buying 50% of two shopping centres in Spain and Portugal in a €280m deal with French Immochan as part of a new strategic partnership, says its CEO.
“We are excited about the opportunity to team up with Immochan in our first high quality retail acquisitions in Spain and Portugal,” said Mike Burns, CEO of the Alaska Permanent Fund in a release. “We look forward to expanding this strategic partnership as we work to build out our portfolio across the region.”……………………………………….Full Article: Source

GIC Buys Stake in Turkey Property Firm

Posted on 31 October 2014 by VRS  |  Email |Print

Sovereign-wealth fund GIC Pte. Ltd. is acquiring a stake in a Turkish real-estate firm for 250 million euros (US$316 million), the latest move by the Singapore firm to tap assets in emerging markets.
The sovereign-wealth fund will buy a 20% stake in Rönesans Gayrimenkul Yatýrým A.S., which has 25 properties in its portfolio including shopping malls and offices in Turkey. The transaction is expected to be completed by the end of this year, the companies said in a joint statement………………………………………..Full Article: Source

GIC to take $402m stake in Turkish real estate developer

Posted on 31 October 2014 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC will inject 250 million euros (S$402 million) to acquire a strategic stake in Turkey’s leading commercial real estate developer, Ronesans Gayrimenkul Yatirim (RGY), both firms said.
GIC will acquire “above 20 per cent shareholding in RGY” by subscribing to a rights issue, allowing it to become a “substantial minority” investor and strategic partner. “The new capital will reinforce RGY’s foothold as a leader in the Turkish commercial real estate market and allow for future expansion of its business,” the statement said………………………………………..Full Article: Source

Middle East sovereigns accelerate push to alternatives

Posted on 31 October 2014 by VRS  |  Email |Print

Every Middle Eastern sovereign wealth fund plans to increase its exposure to real estate in the year ahead and most also plan to increase their allocations to private equity, says a long-standing survey of investors based in the region.
The findings – from the Invesco Asset Management Study and based on interviews with 112 investors – underline the trend towards alternative asset classes. Middle East sovereign funds use a “barbell” investment model, says Nick Tolchard, head of Invesco Middle East, who was in Dubai to present the findings………………………………………..Full Article: Source

Qatar set to conclude one of biggest property deals in UK history

Posted on 30 October 2014 by VRS  |  Email |Print

Qatar’s sovereign wealth fund looks set to conclude one of the biggest property deals in UK history: the purchase of HSBC’s headquarters in London’s Docklands for $1.8bn, Global Construction Review reports.
The Qatari Investment Authority (QIA) has been in competition with two Chinese insurance companies, Ping An and China Life, to buy the 656ft tower, which is London’s largest office building, from South Korea’s National Pension Service (NPS). The tower has made – and lost – considerable sums for its owners in recent years………………………………………..Full Article: Source

Qatar fund set to buy Canary Wharf tower for $1.7bn

Posted on 29 October 2014 by VRS  |  Email |Print

Qatar’s sovereign wealth fund is believed to have moved ahead of Chinese bidders to buy HSBC’s global headquarters in London’s Canary Wharf for $1.7 billion. In what would be one of the biggest property deals in the UK, Qatar Investment Authority has reportedly agreed to buy London’s biggest and most expensive office building, a 656 foot tower with 45 storeys in the heart of the city’s docklands area.
The building was put on the market in April this year by Korea’s National Pension Service (NPS), who are looking to cash in on London’s booming property market………………………………………..Full Article: Source

Qatar beats Chinese rivals in $1.8bn deal for London’s largest office tower

Posted on 29 October 2014 by VRS  |  Email |Print

Qatar’s sovereign wealth fund looks set to conclude one of the biggest property deals in UK history: the purchase of HSBC’s headquarters in London’s Docklands for $1.8bn.
The Qatari Investment Authority (QIA) has been in competition with two Chinese insurance companies, Ping An and China Life, to buy the 656ft tower, which is London’s largest office building, from South Korea’s National Pension Service (NPS). he tower has made – and lost – considerable sums for its owners in recent years………………………………………..Full Article: Source

Qatar to buy HSBC’s global HQ for GBP1.1bn

Posted on 28 October 2014 by VRS  |  Email |Print

Qatar’s sovereign wealth fund has agreed to buy HSBC’s global headquarters, London’s biggest and most expensive office building, in the latest sign that the global financial capital’s commercial property market is still strong. The Qatar Investment Authority will pay just over £1.1bn to Korea’s National Pension Service for the building, said people familiar with the matter.
The price just tops the previous record for the Canary Wharf tower, which was bought by Spanish property company Metrovacesa for £1.09bn in 2006. HSBC had to take ownership back in-house in 2008 after Metrovacesa got into financial difficulties. It later sold the building to Korean pension fund NPS for nearly £800m………………………………………..Full Article: Source

Qatar Sovereign Wealth Fund May Be the Next Owner of HSBC Tower

Posted on 27 October 2014 by VRS  |  Email |Print

They own Harrods, the Shard and part of Barclays, Sainsbury’s and the London Stock Exchange. Now the Qatari’s look set to get their hands on HSBC’s headquarters in London’s Canary Wharf.
In the week that Qatari ruler the Emir Sheikh Tamim bin Hamad al-Thani visits Britain, the Qatar Investment Authority edged ahead of the Chinese to become preferred bidder for the 656ft tower. With a price tag of £1.1bn the sale would be one of the biggest property deals ever seen in the UK………………………………………..Full Article: Source

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

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