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Sovereign Wealth Funds Briefing - Category | Alternative Investments more

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

Singapore Govt in new Akl property deal

Posted on 27 March 2015 by VRS  |  Email |Print

The Singaporean Government is expanding its New Zealand property holdings, taking a further stake in Auckland via a new office block yet to be built. Listed landlord Goodman Property Trust has just announced that Fletcher Building has struck a deal to sell a new Wynyard Quarter building, 80 per cent leased to Datacom, to the Singaporeans and Goodman.
The purchaser is Wynyard Precinct Holdings - 49 per cent owned by the Singapore state’s Government Investment Corporation and 51 per cent owned by listed landlord Goodman Property Trust………………………………………..Full Article: Source

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

Posted on 26 March 2015 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 $307 million, the fund said on Wednesday.
The fund bought a 49.9 percent stake for $60.8 million, which according to the statement has debts of $185.1 million, while TIAA/CREF bought the rest and will manage it on behalf of the partnership, it added. The seller was not named. Last November, the two announced that they had bought another property in a similar deal………………………………………..Full Article: Source

Do Sovereign Fund Direct Private Investments Deliver Value?

Posted on 25 March 2015 by VRS  |  Email |Print

As sovereign funds boost direct private equity and venture capital investment, new research suggests that they may be missing out on returns. In a recent long-term study, sovereign wealth funds’ and other institutions’ direct investments in venture capital.
Alaska Permanent Fund Corp. made direct investments totaling $128.5 million in Juno, and now its 28 percent stake is worth $1.5 billion. The allocation was a “real home run,” says APFC chief executive Michael Burns. “We’re really proud of it, but it does distort our direct investment performance, as it wasn’t the norm.” Sovereign wealth funds’ ability to deploy large amounts of capital, combined with their long-term horizons and lack of liabilities, makes them natural candidates for private equity and venture capital investments, whether they allocate directly or through external managers………………………………………..Full Article: Source

Norway’s $870bn sovereign fund to invest in Asian real estate

Posted on 24 March 2015 by VRS  |  Email |Print

Norway’s Government Pension Fund Global (GPFG), the world’s biggest sovereign wealth fund, now plans to add Asian properties to its global real estate portfolio. To begin with, the $870bn (£583.5bn, €799.6bn) wealth fund will target commercial real estate in Singapore and Tokyo, according to Karsten Kallevig, head of real estate investments at the Oslo-based fund.
The focus is on specific markets rather than sectors, Kallevig told Bloomberg. Just as in purchases in Europe and the US, the fund will find partners for its planned Asian expansion, Kallevig said………………………………………..Full Article: Source

Norway sovereign wealth fund eyeing real estate in Tokyo, Singapore

Posted on 24 March 2015 by VRS  |  Email |Print

Norway’s wealth fund is making final preparations for its first Asian real estate investment as it builds a portfolio of properties in the world’s biggest cities. After scouring Asia for investment opportunities, the $870 billion fund, built from Norway’s oil revenue, has narrowed its search to Singapore and Tokyo, said Karsten Kallevig, head of real estate investments at the Oslo-based fund.
“Tokyo is arguably the single biggest market in the world for real estate,” he said in an interview Friday. While the fund doesn’t have an ultimate spending target, “we can invest a lot in Asia,” he said. The Government Pension Fund Global, its official name, targets markets based on growth potential and supply constraints as it seeks to invest in 10 to 15 cities globally………………………………………..Full Article: Source

GIC, Exeter Property Group form European real estate partnership

Posted on 24 March 2015 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC formed a €300 million ($328 million) real estate partnership with Exeter Property Group, said a joint news release from the fund and real estate manager. Exeter will “acquire and actively manage the assets and implement value-add strategies including development and redevelopment to generate stable, long-term income returns,” the news release said.
The partnership will target “logistics properties in European distribution hubs, which offer easy access to motorways, water ports, airport and rail nodes,” the release said. The growing trend of e-commerce, supply-chain reorganization and demand for third-party logistic providers will increase demand for these properties over the long term, Exeter and GIC predict………………………………………..Full Article: Source

Brigade, GIC Singapore acquire HUL’s property arm

Posted on 24 March 2015 by VRS  |  Email |Print

Brigade Group has acquired Brooke Bond Real Estate Pvt Ltd, which has 11.39 hectares of land in Bengaluru, though Brigade Properties, its joint venture with GIC Singapore, for an undisclosed amount. Brooke Bond Real Estate is a subsidiary of consumer goods company Hindustan Unilever Ltd (HUL).
Bengaluru-based Brigade Group will develop an IT special economic zone on the 11.39-hectares located in Whitefield, Bengaluru. One of the city’s major IT hubs is located in Whitefield. Brigade Enterprises Chief Financial Officer Suresh Kris said: “We got the property at a very competitive price.” He, however, refused to divulge financial details of the deal………………………………………..Full Article: Source

GIC-Brigade JV buys site in Bangalore to develop it into IT special economic zone

Posted on 24 March 2015 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC’s joint venture with Indian property developer Brigade Group has acquired a landmark site in Brookefields, Whitefield in Bangalore and plans to develop it into an IT special economic zone of more than three million square feet.
The joint venture, Brigade Properties Pvt Ltd, has acquired 100 per cent of Brooke Bond Real Estate Pvt Ltd - which owns the Whitefield property - from Hindustan Unilever Ltd. The transaction has received the nod of the SEZ Board of Approvals, GIC and Brigade Group said in a joint release on Monday………………………………………..Full Article: Source

Biggest Wealth Fund Targets Tokyo for Next Real Estate Purchase

Posted on 23 March 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund is looking at Tokyo or Singapore for its first real estate investment in Asia as the investor expands globally. “That’s where we think we’ll start,” Karsten Kallevig, the chief investment officer of real estate at the Oslo-based fund, said in an interview after a speech in the Norwegian capital. “If we’re really successful there, then maybe we can add a third and a fourth and a fifth city at some point.”
After in 2010 being allowed to expand into the property market, Norway’s $870 billion wealth fund has amassed about $18 billion in real estate holdings. It has snapped up properties in major cities such as New York, London and Paris, with a main focus on office properties………………………………………..Full Article: Source

Norway’s $860 bln oil fund to allocate new cash to real estate

Posted on 16 March 2015 by VRS  |  Email |Print

Norway’s $860 billion sovereign wealth fund was weighed down by poorly performing European investments in 2014 and will increase real estate holdings and again sell European bonds this year, it said on Friday.
The fund returned 7.6 percent last year, 0.8 percentage point below its internal benchmark based on global markets, as rock bottom bond yields, poor growth prospects and increasing geopolitical tensions in parts of Europe cut into returns. With low oil prices sharply reducing fresh inflow from the government, the fund will prioritise real estate after spending 2014 shifting its Europe-focused portfolio towards US and Asian assets………………………………………..Full Article: Source

Investors rediscover appetite for Italian real estate stocks

Posted on 12 March 2015 by VRS  |  Email |Print

Italian real estate stocks such as Prelios and Risanamento rallied on Wednesday to test new highs as investors warm to improving business prospects in a market battered by years of recession. In February Qatar’s sovereign wealth fund struck a deal that made it the sole owner of a prime real estate area in Milan worth more than 2 billion euros ($2.12 billion).
Europe’s commercial property market sizzled last year as demand for real estate in Paris, Britain and Germany, plus strong private equity interest in Ireland and Spain, sent deals to their highest level since the financial crisis………………………………………..Full Article: Source

US property yields lures Aussie super funds

Posted on 11 March 2015 by VRS  |  Email |Print

Sunny skies and hula dancers aren’t the only things attracting foreigners to Hawaii. Add this to the list: one of the United States’ most valuable shopping centres. Mall giant General Growth Properties Inc. last week announced it had sold a 25 per cent stake in Honolulu’s Ala Moana Centre, the world’s largest open-air mall, for $US1.37 billion.
The deal is notable for two reasons: its sky-high price and General Growth’s partner, AustralianSuper, an $US84 billion retirement fund making its first major foray into US property investment………………………………………..Full Article: Source

SWFs Double Down on Hotels

Posted on 09 March 2015 by VRS  |  Email |Print

Sovereign wealth funds’ investments in the hospitality sector have dominated the headlines this week. On Monday, the British press reported that the Abu Dhabi Investment Authority (ADIA) had offered an eye-watering GBP1.6 billion ($2.4 billion) for a trio of landmark London hotels — the Berkeley, Claridge’s and the Connaught — owned by the Maybourne Hotel Group.
At a reported GBP3 million per room, the offer would represent one of the highest per-key prices ever paid. But ADIA will face competition, with other Middle Eastern investors believed to have submitted rival bids. It’s not just British properties that are attracting interest from sovereign wealth funds. The Sovereign Wealth Center has observed a boom in the Japanese hospitality sector in 2015, and hotels in emerging markets are drawing capital from state investors too………………………………………..Full Article: Source

ICD to develop $1bn office project in Dubai

Posted on 05 March 2015 by VRS  |  Email |Print

Investment Corporation of Dubai (ICD), the state’s sovereign wealth fund, has partnered with Canadian property manager Brookfield to build a $1 billion development in the heart of the emirate’s financial district, said a report.
The development, ICD Brookfield Place, will come up next to the cluster of Dubai International Financial Centre (DIFC) buildings. It will comprise a 50-storey office tower, hotel and retail outlets, reported the Financial Times. ICD Brookfield Place is a vote of confidence from the government in continued growth in its financial centre amid increasing competition from neighbouring hubs, including a new free zone in the richer emirate of Abu Dhabi, said the FT report………………………………………..Full Article: Source

Hong Kong’s new €25bn sovereign fund to target real estate

Posted on 05 March 2015 by VRS  |  Email |Print

Hong Kong’s planned new €25bn sovereign wealth fund could invest 50% of its assets in alternative assets, including real estate and private equity, signaling the arrival of a sizeable and powerful new player on the international property scene.
Announced on Tuesday, the vehicle, dubbed the Future Fund, could be set up by year end and be seeded with HK$220bn (€25bn) of funding from the Chinese special administrative region’s existing Land Fund. A panel of advisers has recommended an annual top-up amounting to 25%-33% of Hong Kong’s future budget surpluses as the city plans for population ageing……………………………………….Full Article: Source

SWFs Eye New Private Equity Strategies

Posted on 02 March 2015 by VRS  |  Email |Print

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

Norway sovereign fund bulks up on real estate

Posted on 25 February 2015 by VRS  |  Email |Print

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

Gulf invests $3bn in UK property in 2014

Posted on 23 February 2015 by VRS  |  Email |Print

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

Abu Dhabi Investment Authority Deploys Capital to European Real Estate

Posted on 17 February 2015 by VRS  |  Email |Print

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

Singapore’s Temasek, JTC agree to merge 4 real estate subsidiaries

Posted on 17 February 2015 by VRS  |  Email |Print

Singapore state investor Temasek Holdings and JTC Corp, a government agency for infrastructure development, agreed to combine four of their real estate and urban planning units, to capitalise better on rapid urbanisation in emerging markets.
The merged group’s value would be worth about S$5 billion ($3.7 billion) based on the underlying entities, the two firms said. JTC’s Ascendas Pte and JURONG International Holdings Pte Ltd (JIH) will combine with Temasek’s Surbana International Consultants Holdings and Singbridge Group. The merger is expected to be completed within the first half of this year………………………………………..Full Article: Source

China Sovereign Fund Buys $1.2B Tokyo Building From Mori

Posted on 16 February 2015 by VRS  |  Email |Print

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

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

Posted on 16 February 2015 by VRS  |  Email |Print

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

Qatar’s clean sweep builds UK assets portfolio

Posted on 16 February 2015 by VRS  |  Email |Print

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

China’s CIC bought Tokyo landmark property-advisers

Posted on 13 February 2015 by VRS  |  Email |Print

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

Carlyle Group sees rise of sovereign wealth fund investment, decline in pensions

Posted on 12 February 2015 by VRS  |  Email |Print

Sovereign wealth funds are “a gigantic source of new investment” that are elbowing aside public pension funds in the private equity space, Carlyle Group co-CEO David Rubenstein said Wednesday. Such state-controlled funds increased to 37 percent of capital commitments at Carlyle last year, up from 17 percent a year earlier, Rubenstein said.
“I suspect that will continue. At the same time public pension funds are going down, relatively speaking. It was 28 percent; now it’s about 18 percent,” Rubenstein said during an investor conference call to announce the District-based firm’s 2014 financial results………………………………………..Full Article: Source

How Hedge Funds Can Access Sovereign Wealth Funds

Posted on 12 February 2015 by VRS  |  Email |Print

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

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

Posted on 10 February 2015 by VRS  |  Email |Print

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

Jain Housing Raises Funds From Singapore’s GIC

Posted on 06 February 2015 by VRS  |  Email |Print

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

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