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Empire State Building: Now Partially Owned by Qatar

Posted on 26 August 2016 by VRS  |  Email |Print

Qatar’s sovereign wealth fund has made an iconic purchase in America — a stake in the company that owns New York’s Empire State Building. The $622-million purchase by the Qatar Investment Authority comes as the Doha fund increases its investments in the U.S. as the small country on the Arabian Peninsula tries to cope with low global oil and gas prices.
The Empire State Realty Trust Inc., which manages the 102-story, 1,454-foot (443-meter) -tall building, announced the Qatari purchase late Tuesday, saying the fund would gain a 9.9-percent stake in the company. The trust owns a total of 14 office properties and six retail properties around the New York area………………………………………..Full Article: Source

Qatar’s Empire State Building investment is rare move for foreign fund

Posted on 26 August 2016 by VRS  |  Email |Print

The Qatar Investment Authority’s acquisition of a 9.9-percent stake in Empire State Realty Trust, announced Wednesday, is an unusual move for a sovereign wealth fund. But it offers several advantages, analysts say. “It is relatively rare to see [sovereign wealth funds] buy a stock position,” said John Guinee, an analyst at Stifel. Far more often, they buy direct stakes in buildings.
When Norway’s sovereign wealth fund Norges Bank Investment Management invested with publicly traded Boston Properties last year, for example, it didn’t buy its stocks. Instead, it bought a 45-percent joint venture interest in the Citigroup Center at 601 Lexington Avenue for $725 million. In 2013, it had bought a 45-percent stake in Boston Properties’ 7 Times Square for $684 million………………………………………..Full Article: Source

Qatar Wealth Fund Buys 9.9% Stake in Empire State Building Owner

Posted on 24 August 2016 by VRS  |  Email |Print

Qatar Investment Authority, the sovereign wealth fund of the Middle Eastern country, bought a 9.9 percent interest in Empire State Realty Trust, owner of New York’s Empire State Building.
The fund purchased 29.6 million newly issued Class A common shares at $21 each, and will have a 9.9 percent economic and voting interest in the real estate investment trust. The acquisition translates into a new $622 million investment in Empire State Realty, the company said in a statement Tuesday………………………………………..Full Article: Source

U.K. Property Values? They Are Anyone’s Guess

Posted on 24 August 2016 by VRS  |  Email |Print

Most agree commercial real estate is down since Brexit, but estimates differ over how much. Property broker CBRE estimated that property values across the U.K. fell 3.3% in July. Data-firm MSCI Inc. said values fell 2.8%.
Norway’s sovereign-wealth fund said it took 5% off the value of its U.K. property portfolio because of Brexit. Aberdeen Asset Management, which operates a U.K. property fund, at first knocked its value down 17% to reflect rapid sales but more recently said it is off 5%………………………………………..Full Article: Source

Norway’s oil fund pares UK property portfolio after Brexit vote

Posted on 19 August 2016 by VRS  |  Email |Print

Norway’s $893-billion sovereign wealth fund cut the value of its UK property portfolio by 5 percent after Britain’s vote to leave the EU, and is concerned at the prospect that Brexit might limit free movement of goods, services and people, it said on Wednesday.
The world’s largest sovereign fund is one of Britain’s biggest foreign investors, owning shares in most top UK companies and holding $11 billion in government bonds. It co-owns Regent Street, one of London’s premier shopping streets. Conversely, Britain is crucial to the fund as its second-largest investment location after the United States, accounting for 10.2 percent of the fund’s value at end-2015………………………………………..Full Article: Source

Sovereign Funds Hold Steady on Private Equity Allocation

Posted on 19 August 2016 by VRS  |  Email |Print

Traditionally, public pensions have been a reliant source of capital for private equity deals. However, sovereign wealth funds continue to gain ground in the private equity investor base, as assets steadily grow for the institutional investor class. The total sovereign fund allocation to private equity tepidly increased for the year ended June 30, 2016, for a number of reasons.
First, several wealth funds have been realigning their private equity fund interests, selling some off to secondary buyers (sometimes even other asset owner peers), while continuing to recommit to strategic/geopolitical private equity funds, push capital into separate accounts, augment co-investment activity or allocate to top-quartile funds………………………………………..Full Article: Source

Norway’s sovereign fund cuts value of UK property portfolio after Brexit

Posted on 18 August 2016 by VRS  |  Email |Print

World’s largest sovereign fund reduces portfolio value by 5% saying there are question marks as to what EU vote means. Norway’s $893bn (£687bn) sovereign wealth fund has cut the value of its UK property portfolio by 5% after Britain’s vote to leave the EU.
The world’s largest sovereign fund is one of Britain’s biggest foreign investors, owning shares in most top UK companies and $11bn in government bonds. It co-owns Regent Street, one of London’s premier shopping streets………………………………………..Full Article: Source

Property market fears as wealth fund slashes value of UK portfolio after Brexit

Posted on 18 August 2016 by VRS  |  Email |Print

The world’s biggest sovereign wealth fund has added to fears over Britain’s property market as it slashed the value of its UK portfolio after the Brexit vote. Norway’s 7.18 trillion kroner (£669 billion) Global Government Pension Fund said it had cut the value of its UK property portfolio by 5% due to ” increased volatility and uncertainty” in the sector.
Almost a quarter of its 221 billion Norwegian kroner (£21 billion) property portfolio is invested in the UK. The fund said its external valuers could not update property valuations to take account of the Brexit vote impact due to a shortage of data………………………………………..Full Article: Source

Singapore fund buys most of Denver manufactured-home communities firm

Posted on 17 August 2016 by VRS  |  Email |Print

A Singapore sovereign wealth fund is buying most of a Denver company that owns manufactured-home communities. Yes! Communities said GIC, formerly known as Government of Singapore Investment Corporation, is buying 71 percent of the Denver company that owns and manages 178 manufactured-home communities in 17 states.
Terms of the deal weren’t disclosed but in June, the Wall Street Journal estimated the total value of Yes! Communities at $2 billion. Yes! Communities management and existing owner Stockbridge Capital Group LLC of San Francisco will continue to own the remaining 29 percent………………………………………..Full Article: Source

GIC among investors buying 71 percent of US property firm, likely valuing it above $2 billion

Posted on 17 August 2016 by VRS  |  Email |Print

Singapore’s sovereign-wealth fund GIC is among two investors who have bought a 71 percent stake in Denver-based Yes Communities, an owner of manufactured housing estates in the United States, the U.S. firm said. YES is a portfolio company of real estate funds managed by Stockbridge Capital Group.
The deal would lead to consolidation of YES’s three home community portfolios into a single entity, whose principal owner and sole general partner would be Yes Communities, a newly formed real estate investment trust, YES said in a statement………………………………………..Full Article: Source

Old Mutual, SWF to invest in Nigerian real estate, agriculture

Posted on 15 August 2016 by VRS  |  Email |Print

Anglo-South African financial services firm Old Mutual and Nigeria’s sovereign wealth fund on Friday signed agreements to set up two funds to invest in real estate and agriculture in Africa’s most populous nation. Old Mutual and Nigeria Sovereign Investment Authority (NSIA) said they would jointly raise a $500 million fund to invest in real estate and another $200 million to spend on agriculture projects in Nigeria.
The West African nation is in the middle of its worst crisis in decades as a slump in oil revenues hammers public finances and the naira. Gross domestic product shrank in the first quarter and the central bank governor has said a recession is likely………………………………………..Full Article: Source

Qatar fund may back RMZ scion’s co-working startup

Posted on 12 August 2016 by VRS  |  Email |Print

A young scion at one of India’s largest commercial space developers is challenging WeWork, a heavily funded US startup focused on technology-enabled shared office spaces and which is finalizing its entry into the country.
The 26-year-old Sidharth Menda of Bengaluru-headquartered RMZ Corp is starting up a community workspace venture for millennials, called CoWrks, with likely financial backing from Middle East sovereign wealth manager Qatar Investment Authority (QIA). QIA has been a large investor in RMZ’s office space portfolio, topping 20 million sqft and has supported growth through acquisitions………………………………………..Full Article: Source

Asian investors relocate to global real estate in search of sustainable returns

Posted on 12 August 2016 by VRS  |  Email |Print

In its latest annual report, released in July, China Investment Corporation (CIC) highlights how important global real estate has become to the sovereign wealth fund’s investment strategy. “For long-term asset investment, we ramped up investments in assets that generate stable returns such as real estate and infrastructure,” notes CIC.
To date, it says, that has translated into more than 40 real estate investments across North America, Europe, Asia and Oceania. According to news reports, CIC – one of the world’s largest asset owners – has invested more than US$5.5 billion in property developments since 2013………………………………………..Full Article: Source

Cerberus’ new Europe property fund may attract over $370 mn from Korean investors

Posted on 12 August 2016 by VRS  |  Email |Print

National Pension Service (NPS), Korea Investment Corporation (KIC) and a South Korean insurer are considering putting a combined $370 million into a real estate fund that Cerberus Capital Management is launching to buy distressed assets in Europe, and other domestic institutions are mulling participation in the fund, pension fund and investment banking sources said on August 10.
Cerberus, a U.S. private equity firm specializing in distressed asset investments, is aiming to raise a total of $1.5 billion in the fund, the fourth of its kind, amid expectations that tightened banking regulations under the Basel III and strict asset quality reviews by the European Central Bank will continue to prod European banks to shed non-core assets to bolster their capital base………………………………………..Full Article: Source

Korean Investment Corporation to take stake in Melbourne office complex

Posted on 09 August 2016 by VRS  |  Email |Print

The South Korean sovereign wealth fund, the Korean Investment Corporation (KIC), is believed to be part of a group acquiring a half stake in a Melbourne office complex for AUD289m (€188m).
The vendor, Dexus Property Group, has given the group an option to take the remaining 50% for the same price – valuing Southgate Complex, on Melbourne’s Southbank, at AUD578m. Darren Steinberg, Dexus chief executive, told IPE Real Estate: “This was the first tranche of the sale. Over the next few months, we will sell the remaining 50% in a second tranche………………………………………..Full Article: Source

Future Fund adds Kiskadee to alternative risk premia manager roster

Posted on 01 August 2016 by VRS  |  Email |Print

The Future Fund, one of Australia’s sovereign wealth investment funds, has allocated capital to a second ILS fund manager by selecting Kiskadee Investment Management, the insurance-linked securities (ILS) fund and reinsurance-linked investment arm of re/insurer Hiscox.
The Future Fund is a sovereign wealth fund designed to provide the Australian government with financial support by offering unfunded superannuation liabilities, capitalised to the tune of AUD$117.3 billion, as at March 31st 2016………………………………………..Full Article: Source

New Mexico SIC sets aside $193m for non-core real estate

Posted on 29 July 2016 by VRS  |  Email |Print

The New Mexico State Investment Council plans to invest $193m (€174.5m) in non-core real estate in 2017. The investor’s annual investment plan was approved at a board meeting this week.
New Mexico State said it had already committed sufficient capital to core open-ended funds and was looking to round out its portfolio with value-added funds. The sovereign wealth fund is looking to invest the capital on a global basis………………………………………..Full Article: Source

Alaska’s $53 Billion Permanent Pool to Exit Funds of Hedge Funds

Posted on 29 July 2016 by VRS  |  Email |Print

Alaska’s $53 billion wealth fund plans to exit all of its funds of hedge funds and will instead make investment decisions in-house. Alaska Permanent Fund Corp. plans to pull all of the $2 billion it has invested in liquid assets across Crestline Investors, Mariner Investment Group and Lazard Asset Management, according to Marcus Frampton, its director of private markets.
Alaska will instead rely on its own five-person alternatives team to select hedge funds. “We’ve decided to move to a 100 percent direct program,” Frampton said……………………………………….Full Article: Source

GIC bids for stake in Indian commercial developer

Posted on 29 July 2016 by VRS  |  Email |Print

The world’s biggest alternative investment manager, and Singapore’s sovereign wealth fund look at a $1 billion India real estate deal, while Wanda makes progress on its Hong Kong privatisation plan, while spending some pocket millions on a new web platform. Read on for all these stories and more.
Blackstone, GIC of Singapore and a consortium of sovereign wealth funds from Abu Dhabi and Qatar have advanced in the process to buy a $1-billion stake in the commercial property unit of DLF, people directly familiar with the matter said………………………………………..Full Article: Source

Sovereign wealth funds to become largest private equity allocator

Posted on 27 July 2016 by VRS  |  Email |Print

Sovereign wealth funds could overtake public pension funds as the most significant source of private equity capital in the next five years, David Rubenstein, co-founder and co-chief executive officer of Carlyle Group told attendees at the Private Equity Exclusive conference in Chicago on Monday.
U.S. public pension funds have historically been the biggest source of capital for private equity firms and today account for 30% to 35% of capital, Mr. Rubenstein. However, sovereign wealth fund assets are growing rapidly, expected to increase to $9 trillion by 2020 from $1 trillion in 2004, Mr. Rubenstein said, citing PricewaterhouseCoopers report on asset management in 2020………………………………………..Full Article: Source

Swiss seize Monet, van Gogh works amid U.S. probe of Malaysian fund

Posted on 25 July 2016 by VRS  |  Email |Print

Malaysian Prime Minister Najib Razak said on Thursday judgment should be withheld until all the facts are known after the U.S. government filed lawsuits seeking to seize $1-billion (U.S.) in assets bought with money stolen from a state fund he oversaw.
The U.S. Justice Department lawsuits filed in a federal court on Wednesday did not name Najib, instead referring to “Malaysian Official 1.” Some of the allegations against this official were the same as those in a Malaysian investigation into a $681-million transfer to the premier’s personal bank account………………………………………..Full Article: Source

Abu Dhabi Investment Authority’s real rate of return stays steady

Posted on 22 July 2016 by VRS  |  Email |Print

Despite volatile conditions that saw equity markets end 2015 little changed from where they began, the Abu Dhabi Investment Authority, or Adia, recorded a creditable performance from an overall portfolio perspective, the world’s leading sovereign wealth fund said.
In its 2015 annual review, Adia said its 20-year annualised rates of return fell to 6.5 per cent in 2015 from 7.4 per cent the year before. The fund’s 30-year rate of return slipped to 7.5 per cent from 8.4 per cent. “This was primarily as a result of strong returns from the mid-1980s and 1990s falling out of the rolling averages over the periods in question.”……………………………………….Full Article: Source

In Properties Targeted in 1MDB Case, a High-End House Tour

Posted on 21 July 2016 by VRS  |  Email |Print

The properties allegedly bought with funds misappropriated from a Malaysian investment fund would make for a stunning house tour of high-end real estate in New York and Los Angeles.
Besides flashy real estate, the U.S. government alleges that money from the fund, known as 1Malaysia Development Bhd. or 1MDB, was used to buy a $35 million private jet and a stake in EMI Music Publishing………………………………………..Full Article: Source

Abu Dhabi Investment Authority’s real rate of return stays steady

Posted on 21 July 2016 by VRS  |  Email |Print

Despite volatile conditions that saw equity markets end 2015 little changed from where they began, the Abu Dhabi Investment Authority, or Adia, recorded a creditable performance from an overall portfolio perspective, the world’s leading sovereign wealth fund said.
Now in its 40th year, Adia invests across more than two dozen asset classes globally. It does not disclose the total size of its assets, but the US-based Sovereign Wealth Fund Institute, which tracks the industry, estimates them at $792 billion………………………………………..Full Article: Source

Aberdeen’s unfrozen property fund sells London asset to Norges Bank

Posted on 20 July 2016 by VRS  |  Email |Print

Norway’s sovereign wealth fund has acquired a prime London asset, capitalising on liquidity pressures facing open-ended property funds in the UK. Aberdeen Asset Management has sold a 59,000sqft retail and office building on Oxford Street from a fund that was recently closed to redemptions.
Norges Bank Real Estate Investment Management paid £124m (€149m) for 355-361 Oxford Street, known as Sedley Place, in London’s West End………………………………………..Full Article: Source

Investors Go Bargain-Hunting for U.K. Property After Brexit Vote

Posted on 20 July 2016 by VRS  |  Email |Print

Global investors are on the hunt for U.K. property bargains, expecting that Brexit-fueled economic turmoil could weaken real-estate values. The drop in the value of sterling has only increased the appeal.
Norway’s sovereign wealth fund announced it bought a retail and office property on Oxford Street, one of London’s main shopping destinations from Aberdeen Asset Management for £124 million ($164.3 million). Aberdeen, which resumed trading in its U.K. property fund last week, declined to comment………………………………………..Full Article: Source

Qatar Investment Authority’s purchase of Asia Square Tower One

Posted on 18 July 2016 by VRS  |  Email |Print

The recent acquisition of the 43-storey Asia Square Tower One by Qatar Investment Authority, a sovereign wealth fund, has provided the flagging Singapore real estate market with a much-needed shot in the arm.
Asia Square Tower One was sold by BlackRock, the world’s largest asset manager, for US$2.5 billion ($3.4 billion), a record for Singapore. According to reports, the effective selling price of $2,700 per square foot was lower than what BlackRock had initially hoped to get………………………………………..Full Article: Source

Temasek not averse to distressed assets in India

Posted on 15 July 2016 by VRS  |  Email |Print

Temasek Holdings is open to investing in distressed assets in India either directly or through an asset reconstruction firm, a senior executive has said. Ravi Lambah, however, added that the company has no firm plans to make such investments so far.
“We are an equity-only investor. So, if there is a business that could be a non-performing asset… which is outsourced by a bank to an asset reconstruction firm and that needed an equity infusion, we would look at it just as any other investment opportunity,” the head for telecom, media and technology at Temasek International said………………………………………..Full Article: Source

Temasek plans to invest in Indian real estate

Posted on 13 July 2016 by VRS  |  Email |Print

Temasek Holdings is for the first time considering investment in real estate as an asset class in India. Last year, private equity-owned real estate funds invested $5 billion in India, which is the highest since the 2008 financial crisis, according to investment advisory firm Venture Intelligence.
The Singapore government-owned company is one of the largest investors in India, with a net investment portfolio of about $9 billion, or five per cent of its $179-billion global portfolio………………………………………..Full Article: Source

Investors go alternative

Posted on 12 July 2016 by VRS  |  Email |Print

The Global Alternatives Survey, which covers ten asset classes and seven investor types, shows that of the top 100 alternative investment managers, real estate managers have the largest share of assets (34% and over $1.2 trillion), followed by hedge funds (21% and $755bn), private equity fund managers (18% and $640bn), private equity funds of funds (PEFoFs) (12% and $420bn), funds of hedge funds (FoHFs) (6% and $222bn), infrastructure (5%) and illiquid credit (5%).
Achieving this would have a positive knock-on effect for managers of attracting assets from other investors, such as insurers and sovereign wealth funds, wanting to make the most of market volatility and associated alpha opportunities; particularly given the current lack of clear beta opportunities.”……………………………………….Full Article: Source

Temasek puts US$3b in Avanda’s hedge fund-like vehicle

Posted on 11 July 2016 by VRS  |  Email |Print

Temasek Holdings put US$3 billion (S$4.05 billion) with a fund managed by Avanda Investment Management Pte, started last year by former GIC senior executives. The state investment firm invested with the Avanda Global Multi-Asset Master Fund, which is managed by the Singapore-based manager, Temasek said.
Avanda was partly seeded with money from GIC, and was started by former managers including Sung Cheng Chih, Quah Wee Ghee and Ng Kok Song, a former chief investment officer of the sovereign wealth fund………………………………………..Full Article: Source

Barwa Real Estate Q2 profit nearly trebles

Posted on 05 July 2016 by VRS  |  Email |Print

Qatar’s Barwa Real Estate, one of the Gulf Arab state’s largest listed developers, reported a near-trebling of second-quarter net profit yesterday, according to Reuters calculations. Qatari Diar, a real estate-focused unit of sovereign wealth fund the Qatar Investment Authority, owns 45% of Barwa.
Barwa made a net profit of QR550mn ($151.1mn) in the three months to June 30, Reuters calculated based on previous financial statements in the absence of a quarterly breakdown. This compares with a profit of QR193mn in the prior-year period, Reuters data shows. Barwa made a net profit of QR1.20bn in the first half of 2016, compared with QR3.45bn in the corresponding period of last year, a bourse statement showed………………………………………..Full Article: Source

Sovereign wealth & buyout funds step up in June quarter

Posted on 01 July 2016 by VRS  |  Email |Print

Private equity (PE) entities invested $3,602 million across 129 deals during the quarter ended June, as against $4,278 mn across 169 transactions in the same period last year, about 16% less. According to Venture Intelligence, the investment was 7% lower than the immediate previous quarter ($3,890 mn across 169 transactions).
Singalore’s sovereign wealth fund, GIC, and Abu Dhabi’s ADIA and Malaysia’s Khazanah participated in mega investments. As with the renewable power-focused Greenko Group (that raised $230 mn from ADIA and GIC) and analytics BPO firm Fractal Analytics ($100 mn from Khazanah). Canada-based Fairfax Group committed $300 mn to chemicals manufacturer Sanmar Group (on the heels of its $321 mn bet in Bangalore International Airport, announced in March)………………………………………..Full Article: Source

QIA Said to Weigh Pulling Credit Suisse London Office Sale

Posted on 28 June 2016 by VRS  |  Email |Print

The Qatar Investment Authority is considering abandoning the sale of 1 Cabot Square, an office building in London’s Canary Wharf financial district leased to Credit Suisse Group AG, according to two people with knowledge of the matter.
QIA was reviewing the sale plan even before the U.K. voted to leave the European Union, the people said, asking not to be identified because the sale is not completed. The sovereign wealth fund is still in talks with at least one potential buyer, another person said. A spokesman for QIA declined to comment………………………………………..Full Article: Source

Temasek draws diversified crowd to PE-backed CFO

Posted on 24 June 2016 by VRS  |  Email |Print

Singapore sovereign investment arm Temasek Holdings executed a landmark transaction this week with its $1.1bn Astrea III securitization backed by cashflows generated by private equity funds. But despite the rarity of the deal and the difficulty in coming up with a price gauge, Temasek managed to expand the appeal of the product to a more diversified investor base.
Temasek had a clear set of targets in mind for what it wanted to achieve with Astrea III. For starters, it wanted to further the development of private equity collateralised fund obligations, having been one of the very few globally to bring such deals out………………………………………..Full Article: Source

GIC, Blackstone among investors interested in DLF’s rental arm stake

Posted on 23 June 2016 by VRS  |  Email |Print

Global investors that have submitted expressions of interest for acquiring a stake in realty firm DLF Ltd’s rental arm include both sovereign wealth funds such as Government of Singapore Investment Corp. Pte Ltd (GIC), Abu Dhabi Investment Authority (ADIA) and Canada Pension Plan Investment Board (CPPIB), and private equity firm Blackstone Group Lp.
“The lowest bid received is at over $2 billion. This is the first phase of bidding, which will be followed by one more phase of bidding, post which the final buyer will be decided. The process will take another 2-3 months to close,” said a person directly familiar with the transaction, who did not wish to be named………………………………………..Full Article: Source

Sovereign wealth funds pile into property

Posted on 13 June 2016 by VRS  |  Email |Print

Bid to improve performance as the world’s largest investors grapple with low interest rates. Sovereign wealth funds are piling into property at an unprecedented pace in a bid to improve performance as the world’s largest investors grapple with low interest rates.
State-backed investment vehicles, which are used by countries either to save for a rainy day or to provide money for future generations, increased their allocations to property by 29 per cent last year, according to research looking at 77 sovereign funds with $8tn in assets. ……………………………………….Full Article: Source

Qatar Investment Authority acquires $2.5bn Singapore tower

Posted on 13 June 2016 by VRS  |  Email |Print

Sovereign wealth fund Qatar Investment Authority (QIA) has acquired a 43-storey office building in Singapore from US private equity firm BlackRock in a $2.45bn deal. The sale of the 1.25 million square feet office tower, Asia Square Tower 1, marks the largest single tower real estate transaction in the Asia Pacific to date and the second largest globally, according to BlackRock.
The agreement between the two parties was reached a year after the US firm first put the building up for sale with an asking price of about $2.9bn. The office tower is located in Singapore’s Marina Bay business and financial district and bears the branding of its anchor tenant, Citibank………………………………………..Full Article: Source

Norwegian sovereign fund grows stake in Manhattan office portfolio

Posted on 09 June 2016 by VRS  |  Email |Print

Norway’s sovereign wealth fund has grown its share in a multi-billion-dollar US office portfolio, acquiring a further 4% stake for $142m (€125m). Norges Bank Investment Management (NBIM), responsible for the NOK7.1trn (€767bn) Government Pension Fund Global, said in a statement it had always intended to acquire an increased stake in the Hudson Square joint venture, comprising 11 properties in New York owned by Trinity Church Wall Street.
The joint venture agreed between NBIM and Trinity Church was first launched in November last year and saw the sovereign fund initially spend $1.56bn for a 44% stake………………………………………..Full Article: Source

Norway’s sovereign wealth fund raises stake in Hudson Square joint venture

Posted on 08 June 2016 by VRS  |  Email |Print

Says acquired additional 4 percent in the Hudson Square joint venture with Trinity Church Wall Street, bringing the total share up to 48 percent for the duration of the 75-year ownership period. Says Norges Bank real estate management paid $142 million for the additional share of four percent, bringing the total investment up to $1.7 billion.
Says Trinity Church Wall Street maintains a majority interest of 51 percent in the joint venture. Says joint venture has selected real estate firm Hines as operating partner for the portfolio……………………………………….Full Article: Source

Temasek unit launches bonds backed by private equity funds

Posted on 07 June 2016 by VRS  |  Email |Print

A unit of Singapore investment company Temasek Holdings has launched new bonds that could pave the way for retail investors to put funds into private equity. The US$500 million (S$680 billion) issue of listed bonds is backed by a portfolio of 34 private equity funds.
The move comes on the back of previous efforts by Temasek to broaden the investor base in its private equity holdings. It is not intended as a fund-raising exercise, The Straits Times understands………………………………………..Full Article: Source

New bonds by Temasek fund could pave way for retail access to private equity

Posted on 07 June 2016 by VRS  |  Email |Print

A Temasek Holdings-owned fund of private equity funds is offering a new kind of bond that could eventually pave the way for retail investors to access to the asset class.
The approximately US$500 million of fixed-rate Singapore-listed bonds will be issued by Astrea III, a US$1.1 billion fund of 34 private equity funds, and marketed to institutional and accredited investors. The bondholders contribute about 45 per cent of the fund’s assets, with the remaining 55 per cent in equity coming from Azalea Asset Management, an entity of Temasek, a Singapore government-owned investment company………………………………………..Full Article: Source

BlackRock agrees to sell Singapore office tower to Qatar fund for $2.5 billion

Posted on 06 June 2016 by VRS  |  Email |Print

BlackRock Inc has agreed to sell a 43-storey office building in Singapore to Qatar Investment Authority, a sovereign wealth fund, for S$3.4 billion ($2.5 billion), in what the U.S. firm said was the largest-ever single-tower real estate deal in the Asia-Pacific region.
Asia Square Tower 1, located in the city-state’s financial district, has over 1.25 million square feet of net lettable area and has Citigroup Inc as its anchor tenant, BlackRock and Qatar Investment Authority said in a joint statement. BlackRock was advised by real estate consultant firms JLL and CBRE………………………………………..Full Article: Source

Qatar State Fund Buys Singapore Office Tower for S$3.4 Billion

Posted on 06 June 2016 by VRS  |  Email |Print

Qatar Investment Authority, the sovereign wealth fund of the Middle Eastern country, agreed to buy BlackRock Inc.’s Asia Square Tower 1 for S$3.4 billion ($2.5 billion) in the biggest office transaction in Singapore.
Qatar will purchase the officer tower in the central business district in the largest single-tower sale in the region, according to a joint statement from Qatar Investment Authority and BlackRock Monday. The building has been on the market since last year after bids by a consortium of Norway’s sovereign wealth fund and CapitaLand Ltd., Singapore’s largest developer, and rival bids by ARA Asset Management Ltd. failed to clinch the deal………………………………………..Full Article: Source

Gulf SWFs hold back from UK property deals on Brexit fears

Posted on 06 June 2016 by VRS  |  Email |Print

Gulf Arab investors, some of the biggest buyers of British real estate, are holding back from new deals because they fear a property price slump if Britain leaves the European Union, according to legal and investment sources.
Sovereign and private investors from Qatar, Saudi Arabia, Kuwait and the United Arab Emirates have been prolific buyers of British assets in the past decade, snapping up billions of dollars worth of property, mostly in London. “Sovereign wealth funds are concerned that Brexit is taking its toll on the property market in London,” said a London-based lawyer who works with some of the largest Gulf funds………………………………………..Full Article: Source

Qatar sovereign wealth fund close to buying Asia Square Tower 1 for $3.5 billion

Posted on 03 June 2016 by VRS  |  Email |Print

Qatar Investment Authority (QIA) is said to be on the brink of sealing a deal to buy Asia Square Tower 1 from BlackRock. The price is expected to be about S$2,700 per square foot of net lettable area (NLA) or S$3.5 billion.
The lump sum price will set a fresh record for an investment sale of a piece of Singapore real estate; it will also be the largest transaction in the Asia-Pacific of a single office asset in the past five years. A deal on this Marina View property is expected by this weekend………………………………………..Full Article: Source

Oman SWF backed PE fund OIJIF hits first close of $250 million for second fund

Posted on 30 May 2016 by VRS  |  Email |Print

Oman India Joint Investment Fund (OIJIF), a private equity (PE) fund backed by Oman’s sovereign wealth fund State General Reserve Fund (SGRF) and India’s largest lender State Bank of India (SBI), has hit a first close of $250 million for its second fund, said two people aware of the development.
To be sure, a fund has many closings and a first close implies that it will start investing the money raised. The first fund—which raised and invested $100 million in 2011—did not seek third-party capital and was completely sponsored by SGRF and SBI………………………………………..Full Article: Source

China’s CIC Invests $700M in Brookfield’s 1 New York Plaza

Posted on 27 May 2016 by VRS  |  Email |Print

Mainland sovereign wealth fund China Investment Corporation has made its first significant US real estate investment, acquiring a 49 percent interest in the 1 New York Plaza office tower from Brookfield Property Partners for $700 million, according to reports in the New York press.
CIC, as it is popularly known, has been China’s biggest investor in overseas properties, and has acquired or invested more than $7 billion into real estate assets outside of China since 2012, according to data compiled by Mingtiand……………………………………….Full Article: Source

Sovereign funds seek out yield in illiquid private debt funds

Posted on 25 May 2016 by VRS  |  Email |Print

Demand from sovereign wealth funds seeking higher returns than those on mainstream bonds is helping drive a boom in specialist private debt vehicles that can provide loans for everything from aircraft leasing to lawsuit financing.
Such specialist funds make their returns in a number of ways, including lending to small and medium-sized firms, investing in distressed assets or by providing infrastructure project finance. Once a niche sector, the private debt industry’s assets under management swelled to an estimated $523 billion as of last June from $483 billion at the end of 2014, according to research provider Preqin in the latest data available………………………………………..Full Article: Source

Mumtalakat in US real estate partnership deal

Posted on 24 May 2016 by VRS  |  Email |Print

Bahrain Mumtalakat Holding Company, the sovereign wealth fund of the kingdom, has joined hands with Regent Properties, a real estate development and investment firm based in Los Angeles, US, to acquire a major stake in its existing portfolio of commercial real estate assets worth $250 million across the country.
The US group’s real estate portfolio comprises substantially leased, income-generating Class-A office buildings in the Phoenix, Arizona and Dallas (Texas) areas. With this transaction, Mumtalakat will be joining existing Regent investors including affiliates of BlackRock, CAM Capital, and other well-known endowments and pension funds………………………………………..Full Article: Source

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