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Sovereign Wealth Funds Briefing - Category | Alternative Investments more

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

Qatar towers over others as it buys up the capital city’s skyline

Posted on 28 April 2015 by VRS  |  Email |Print

Qatar’s sovereign wealth fund spent the most on property assets in London out of any company or organisation last year as it tightened its grip on the capital’s skyline.
The Qatar Investment Authority, which already owns or has stakes in the Shard, Harrods, the Chelsea Barracks and the Olympic athletes’ village among many others, invested £1.9 billion in London’s property market in 2014………………………………………..Full Article: Source

Qatar SWF eyes Vietnam skyscraper

Posted on 23 April 2015 by VRS  |  Email |Print

Gulf sovereign wealth fund (SWF), the Qatar Investment Authority (QIA), is reportedly vying with Goldman Sachs to acquire the Keangnam Hanoi Landmark Tower, the tallest building in the Vietnamese capital, according to Korea Economic Daily.
The skyscraper’s value is estimated at more than US$1 billion. However, the development has a troubled history: Sung Wan-jong, the former head of construction firm Keangnam Enterprises, committed suicide this month amid a probe into alleged misdealings with Korean politicians. The operating company for the Hanoi building was also allegedly involved in manipulation of its accounting books as part of efforts to conceal mounting debts during its construction…………………………………….Full Article: Source

Norway Strikes Biggest Property Deal Betting on U.S. Warehouses

Posted on 21 April 2015 by VRS  |  Email |Print

Norway’s sovereign-wealth fund made its biggest real estate investment yet, teaming up with Prologis Inc. to buy warehouse properties in 17 U.S. states for $5.9 billion. The $890 billion fund will cover $2.3 billion of the purchase through the Prologis U.S. Logistics Venture, which is 45 percent owned by the Oslo-based investor. It’s the fund’s largest single real estate purchase since it started buying up property in 2011.
“We’re getting exposure to some good assets in some very good markets,” Karsten Kallevig, head of real estate investments at the fund, said by phone from Oslo…………………………………..Full Article: Source

Qatar’s outbound property purchases largest in the Gulf

Posted on 16 April 2015 by VRS  |  Email |Print

Middle East sovereign wealth funds (SWFs) cut their new investments in real estate in the rest of the world by almost a third last year because of the plunge of oil prices, consultants CBRE estimated. However Qatar’s $4.87 billion of outbound property purchases made it the largest source of capital from the Middle East. Saudi Arabia accounted for $2.30 billion, the United Arab Emirates $1.63 billion and Kuwait $665 million, CBRE wrote. It did not provide figures for the region’s other countries.
Outbound property investment by the SWFs, the vast majority of which are from the wealthy Gulf Arab oil exporters, dropped 31 percent to $5.84 billion in 2014 from $8.45 billion in 2013, CBRE wrote in a report on Tuesday………………………………………..Full Article: Source

Mideast Sovereign Funds Cut Outbound Property Purchases 31% In 2014 – CBRE

Posted on 15 April 2015 by VRS  |  Email |Print

Middle East sovereign wealth funds (SWFs) cut their new investments in real estate in the rest of the world by almost a third last year because of the plunge of oil prices, consultants CBRE estimated. Outbound property investment by the SWFs, the vast majority of which are from the wealthy Gulf Arab oil exporters, dropped 31 per cent to $5.84 billion in 2014 from $8.45 billion in 2013, CBRE wrote in a report on Tuesday.
“This reflects more cautious behaviour from natural resource-based SWFs in light of weaker oil pricing,” CBRE said. “The effect might be even stronger in 2015 and in the next couple of years after.” A large proportion of the investment is in Europe………………………………………..Full Article: Source

Norges Bank warned against greater investment risk as property grows

Posted on 14 April 2015 by VRS  |  Email |Print

The development of an infrastructure portfolio and further growth of its real estate holdings beyond 5% of assets must not change the investment risk profile of Norway’s NOK6.4trn (€706bn) sovereign wealth fund, the government has ruled.
The Norwegian Ministry of Finance said last year that it would consider relaxing the Government Pension Fund Global’s 5% cap on property, as well as allowing the fund to establish an infrastructure portfolio, with a working group convened to advise on the matter………………………………………..Full Article: Source

Much more sovereign wealth could be headed to NYC real estate

Posted on 13 April 2015 by VRS  |  Email |Print

Sovereign wealth funds made quite a splash in Manhattan real estate in 2014, with north of $2 billion in deals. But that may only be the beginning. A growing number of government funds are looking to increase their investments in real estate worldwide, according to new data by research firm Preqin exclusively reviewed by The Real Deal.
Combined with a marked growth in their balance sheets — since October 2013, sovereign wealth funds have increased their total assets from $5.38 trillion to $6.31 trillion — and New York’s attractiveness as an investment destination, this could mean more money is heading to the Big Apple………………………………………..Full Article: Source

Dubai Fund Buys Stake In Cape Town, U.S. Hotels

Posted on 09 April 2015 by VRS  |  Email |Print

Investment Corporation of Dubai has acquired a stake in Cape Town’s luxury five-star waterfront resort, One & Only, along with two other luxury hotels in prime U.S. locations. A sovereign wealth fund owned by the government of Dubai in United Arab Emirates, Investment Corporation exists to generate a superior return on investment, according to its website.
ICD also purchased the W Hotel in Washington, D.C. — the closest hotel to the White House — and a majority holding in the Mandarin Oriental in New York overlooking Manhattan’s Central Park, according to a report in TheNational………………………………………..Full Article: Source

Abu Dhabi closes on $337M purchase of New York Edition

Posted on 08 April 2015 by VRS  |  Email |Print

The Abu Dhabi Investment Authority closed on the purchase of the New York Edition Hotel at 5 Madison Avenue, according to property records filed Tuesday. The 273-room hotel is the third Edition hotel buy for the sovereign wealth fund.
It already owns the London Edition and recently paid $230 million for the Miami Beach Edition Hotel. Marriott International, which created the Edition hotel in partnership with Ian Schrager, acquired the landmarked clock tower for $165 million in 2011………………………………………..Full Article: Source

RMZ to raise Rs 1,000 cr funding from Qatar Investment Authority

Posted on 07 April 2015 by VRS  |  Email |Print

Qatar Investment Authority (QIA), the sovereign wealth manager of Qatar is likely to invest approximately Rs 1,000 crore in a group company of Bangalore-based real estate developer RMZ Corp, according to sources briefed on the matter.
RMZ, which is counted among the top five Indian office space and commercial developers, will channelise the fund raise into acquisition of land for expansion into newer markets such as Mumbai, National Capital Region and Chennai. QIA’s fresh round of funding comes after it bought a 24 percent stake in July, 2013 in RMZ Infotech Pvt Ltd (RIPL), a special purpose vehicle (SPV) of RMZ for $300 million (about Rs 1800 crore). RIPL owns about 20 million sq ft of office space across Bangalore, Mumbai and Gurgaon………………………………………..Full Article: Source

Past 12 Months in Direct RE, Sovereign Funds Spent Over $35 Billion

Posted on 07 April 2015 by VRS  |  Email |Print

Increasingly, sovereign wealth funds and pensions are making more direct investments, especially in real estate and infrastructure. Instead of simply handing money to managers, wealth funds are forming strategic partnerships with commercial developers, banks, life insurers and other pools of capital. According to SWFI’s Sovereign Wealth Fund Transaction Database sovereign funds directly invested over US$ 35 billion in real estate (excluding fund commitments) in the last twelve months.
This is an increase from US$ 21.5 billion compared to the period before the last twelve months. Sovereign funds have been lured by inexpensive financing and rising rents in global cities such as Tokyo and London. Rents in central London have risen the most since 2000 as space dwindles. Global banks are lining up to earn fees to serve institutional investor giants like the Kuwait Investment Authority, Government of Singapore Investment Corporation, Abu Dhabi Investment Authority, Norges Bank Investment Management and CPPIB………………………………………..Full Article: Source

Wealth Funds Turn to Tokyo Property as London Seen as Model

Posted on 02 April 2015 by VRS  |  Email |Print

Global wealth funds are moving to buy more Tokyo properties to take advantage of rising prices in the Japanese capital, one of the highest-ranking officials at the land ministry said.“Long-term pension funds in the U.S. and Europe, particularly in Scandinavia, are looking to lift their positions” in Japanese real estate, Kisaburo Ishii, a vice minister at the ministry, said March 30. “They have been underweight Japanese real estate.”
Norway’s $870 billion wealth fund is preparing to purchase properties in Tokyo after scouring Asia for investment opportunities, Karsten Kallevig, head of real estate investments at the Oslo-based fund, said March 20………………………………………..Full Article: Source

Wealth Funds Turn to Tokyo Property as London Seen as Model

Posted on 01 April 2015 by VRS  |  Email |Print

Global wealth funds are moving to buy more Tokyo properties to take advantage of rising prices in the Japanese capital, one of the highest-ranking officials at the land ministry said.
“Long-term pension funds in the U.S. and Europe, particularly in Scandinavia, are looking to lift their positions” in Japanese real estate, Kisaburo Ishii, a vice minister at the ministry, said March 30. “They have been underweight Japanese real estate.”……………………………………….Full Article: Source

Future Fund could double Hong Kong’s alternative investments

Posted on 01 April 2015 by VRS  |  Email |Print

The creation of Hong Kong’s Future Fund could free up HKD68bn (€8.17bn) of capital to be invested in global real estate markets, according to CBRE. The creation of the new sovereign wealth fund, due to be completed before the end of the year will “effectively double the size” of Hong Kong’s Long Term Growth Portfolio (LTGP) from HKD115bn to HKD225bn, CBRE said.
The LTGP currently invests around 30% of its capital in global real estate assets. If the Future Fund was to invest a similar proportion of its capital, its real estate holdings could gradually increase to HKD68bn………………………………………..Full Article: Source

Norway Focuses on Tokyo and Singapore Real Estate Investments

Posted on 31 March 2015 by VRS  |  Email |Print

Singapore and Tokyo are the prime targets for real estate investment by Norway’s biggest wealth fund. The Norwegian Government Pension Fund Global, which has $870 billion in resources mainly from the country’s oil industry, is planning to snap up real estate in 10 to 15 cities around the world.
It has already bought properties in London, Paris, Berlin and New York. In 2014, around 2.2 per cent or $18 billion of its assets was invested in property and it is seeking to increase that proportion to five per cent. The fund is now seeking high-growth real estate investments in Tokyo and Singapore, the fund’s head of real estate investment Karsten Kallevig confirmed………………………………………..Full Article: Source

HK’s property investment portfolio will double with the establishment of Future Fund

Posted on 30 March 2015 by VRS  |  Email |Print

Hong Kong is on track to raise its profile as a buyer of global property when the city’s Future Fund is launched this year, with government investments tipped to almost double to HK$68 billion under an expected tilt towards real estate. “There is considerable room for the Future Fund to assemble a sizeable real estate portfolio,” said Ada Choi, senior director for CBRE Research Asia, before the release of a report today by the property consultancy that suggests the Future Fund can learn from the established Asian sovereign wealth funds.
Their strategies favour investment in a broad selection of cities and countries with mature markets and sound legal systems, CBRE said. “The Hong Kong Future Fund is relatively small compared to other Asian [wealth funds], such as the China Investment Corporation (US$650 billion under management) and the Government of Singapore Investment Corporation (US$320 billion),” Choi said………………………………………..Full Article: Source

Singaporean govt’s property-buying spree in NZ reaches $1.2b

Posted on 30 March 2015 by VRS  |  Email |Print

The Singaporean Government’s sovereign wealth fund is expanding its New Zealand property holdings after taking a 49 per cent stake in 10 major properties for about $1.2 billion in the last year. Fletcher Building and Goodman Property Trust yesterday announced that Fletcher had struck a deal to sell a new Wynyard Quarter building, 80 per cent leased to Datacom, to the Singaporeans and Goodman, for $86.2 million.
The purchaser is Wynyard Precinct Holdings - 49 per cent owned by the Singapore state’s Government Investment Corporation (GIC) and 51 per cent owned by Goodman………………………………………..Full Article: Source

Goodman and Singaporean fund buy $86.2m Wynyard property

Posted on 27 March 2015 by VRS  |  Email |Print

NZX-listed Goodman Property Trust will end up owning 51% of a new building on Auckland’s waterfront,with the balance held by Singapore’s sovereign wealth fund, GIC. The site of the $86.2 million building has been cleared for earthworks and completion is expected during 2017.
It is being built by Fletcher Building and will be leased to Datacom, which has taken naming rights. Goodman’s relationship with the Singaporean fund was set up last year via a joint venture called Wynyard Precinct Holdings, with plans to build an initial $300 million portfolio………………………………………..Full Article: Source

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