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Sovereign Wealth Funds Briefing - Category | Alternative Investments more

GIC invests €200 million in Spanish real estate firm Gmp

Posted on 06 October 2014 by VRS  |  Email |Print

The Republic’s sovereign wealth fund GIC will invest more than €200 million to take a roughly 30 per cent stake in Spanish real estate company Gmp, the two organisations said in a statement on Monday (Sep 29). The investment by GIC will help Gmp strengthen its position as a major investor in the office and business park segment in Madrid and Barcelona.
Following GIC’s investment, Gmp will embark on a strategic plan which focuses on three main pillars: selective investment in office buildings, active management of the existing Gmp portfolio, including refurbishment work and improving energy efficiency, and selling non-strategic assets so that funds can be re-invested in properties with greater value creation potential………………………………………..Full Article: Source

Norway’s wealth fund sees property portfolio focused on global cities

Posted on 03 October 2014 by VRS  |  Email |Print

Norway’s $855 billion sovereign wealth fund, the world’s largest, will focus its future real estate acquisitions on booming global cities, its deputy chief said on Thursday. The fund, which owns on average 1.3 percent of all listed companies worldwide, invests 1.2 percent of its holdings in real estate but aims to increase that stake to 5 percent over time.
Some of its properties are located on London’s Regent Street and Savile Row, the Champs-Elysees in Paris and in New York. “We look for cities that are expected to see rising housing prices, that attract talent and people who are willing to pay to live in these cities,” Trond Grande, the fund’s deputy chief, told a business seminar………………………………………..Full Article: Source

Qatari developer in $697m land deal

Posted on 03 October 2014 by VRS  |  Email |Print

Qatar’s Barwa Real Estate says it will sell land worth QR2.54 billion ($697.4 million) to the government, marking the latest state assistance which the indebted developer has received. Qatari Diar, the real estate arm of Qatar’s sovereign wealth fund, stepped in with financial aid last year, agreeing to buy some of Barwa’s assets for $7.1 billion.
In exchange for a plot in Lusail City, Barwa received QR1.04 billion ($285 million) in cash, while the government also settled QR1.5 billion ($411 million) of the developer’s bank loans, according to the bourse filing. The size of the plot was not disclosed………………………………………..Full Article: Source

South Korea’s Sovereign Fund to Expand Alternative Asset Allocation

Posted on 01 October 2014 by VRS  |  Email |Print

Korea Investment Corp ., South Korea’s $72 billion sovereign-wealth fund, plans to increase allocation to alternative assets to up to 40% from a current 10% in the next few years, according to Chairman and Chief Executive Hongchul Ahn.
The sovereign fund also has reorganized the funding structure for traditional and alternative assets, consolidating separate buckets of capital into a common pool……………………………………….Full Article: Source

Private equity managers face growing competition for deals

Posted on 01 October 2014 by VRS  |  Email |Print

Last week, Singaporean sovereign wealth fund GIC, one of the world’s biggest and oldest backers of private equity funds, agreed to buy nearly half of RAC from its owner, Carlyle, in a deal valuing the company at more than £2bn including debt. The bid, which derailed plans to list the UK roadside recovery specialist, followed approaches from Apax, CVC, Cinven, Blackstone and Charterhouse, people with knowledge of the situation said.
The move highlights how years of record low interest rates are pushing some of the largest pension plans and sovereign wealth funds to invest their cash directly – and save the expensive fees charged by buyout fund managers – to boost returns. The intensifying trend is yet another illustration of the competitive squeeze affecting private equity houses’ ability to put money to work………………………………………..Full Article: Source

Alaska Permanent Fund Corp. says it will stick with hedge funds

Posted on 29 September 2014 by VRS  |  Email |Print

The Alaska Permanent Fund won’t be following the lead of California’s huge CalPERS public pension fund, which just made the startling decision to stop investing in hedge funds. But Mike Burns, executive director of the Alaska Permanent Fund Corp., which manages the Permanent Fund, says he understands why CalPERS managers did what they did.
“We think about it all the time,” he said. Hedge funds were created to “hedge” risk similar to an insurance policy. Big investors would use hedge funds to balance investment risks, like making investments that would go up if the stock market was to fall………………………………………..Full Article: Source

Norway now second-largest buyer of US commercial real estate

Posted on 25 September 2014 by VRS  |  Email |Print

Norway, surprisingly, now ranks second among foreign U.S. commercial real estate buyers, topped only by Canada. The sovereign fund that manages the country’s substantial oil wealth made a play for Blackstone Group’s 1095 Sixth Avenue just last week, in a deal that is expected to fetch up to $2.25 billion.
The move followed the Norges Bank Investment Management’s purchase of a 45 percent interest in 601 Lexington for $1.5 billion. In total, the country has spent over $3.2 billion on U.S. real estate so far this year, according to data from research firm Real Capital Analytics cited by Bloomberg News. The push comes as Norway looks to invest as much as 5 percent of its assets in real estate………………………………………..Full Article: Source

Norway Jumps to No. 2 Foreign Buyer of U.S. Real Estate

Posted on 24 September 2014 by VRS  |  Email |Print

Norway has vaulted to the top ranks of foreign U.S. commercial real estate buyers as its $870 billion sovereign-wealth fund, the world’s largest, acquires buildings from New York to San Francisco.
The country has spent more than $3.2 billion on U.S. real estate this year, including the assumption of debt, according to research firm Real Capital Analytics Inc. and statements from the wealth fund. That makes it the biggest international buyer after Canada. The total is more than double the amount spent in all of 2013, when Norway ranked No. 6 for property purchases………………………………………..Full Article: Source

Boston Properties to Sell Stakes in 3 Buildings to Norway Fund

Posted on 18 September 2014 by VRS  |  Email |Print

Boston Properties Inc. ( BXP ) agreed to sell a 45% interest in three buildings in New York City and Boston to affiliates of Norway’s sovereign-wealth fund for $1.5 billion. The deal with Norges Bank Investment Management involves stakes in 601 Lexington Avenue in New York City, as well as the Atlantic Wharf Office Building and 100 Federal Street in Boston. Each building is at least 91% leased.
The agreement is another example of foreign investors getting involved in U.S. commercial real estate. Increased demand from overseas has helped drive U.S. commercial property values to high levels, particularly in major cities favored by global firms……………………………………Full Article: Source

Norway Fund to Invest $1.5 Billion in Office Properties

Posted on 17 September 2014 by VRS  |  Email |Print

Norway’s sovereign-wealth fund, the world’s largest, agreed to buy stakes in three prime U.S. office buildings for about $1.5 billion, extending a real estate shopping spree as it seeks higher-yielding assets.
Affiliates of Norges Bank Investment Management, which manages the Norwegian government’s global pension fund, is acquiring 45 percent interests the buildings from Boston Properties Inc. , the seller said yesterday in a statement. The properties are 601 Lexington Ave. in New York and the Atlantic Wharf Office Building and 100 Federal Street in Boston…………………………………Full Article: Source

Dubai To Build $1.4B Royal Atlantis Resort By 2018

Posted on 16 September 2014 by VRS  |  Email |Print

Sovereign wealth fund Investment Corporation of Dubai announced on Monday plans for the $1.4 billion Royal Atlantis Resort and Residences on Palm Jumeirah island in Dubai, one of several new projects to be completed over the next three years.
The 46-story Royal Atlantis, an expansion of the existing Atlantis Hotel and Resort at Palm Jumeirah, will have 800 rooms and suites and 250 luxury residences, according to a joint statement of ICD and Kerzner International Holdings Ltd., which will operate the luxury resort………………………………………..Full Article: Source

Investment Corporation of Dubai and Kerzner International to Redefine Luxury in Dubai with The Royal Atlantis Resort and Residences on The Palm

Posted on 16 September 2014 by VRS  |  Email |Print

Investment Corporation of Dubai (ICD) and Kerzner International Holdings Limited (Kerzner), a leading international developer and operator of destination resorts and luxury hotels, today unveiled plans to forever enhance the landscape of Dubai with The Royal Atlantis Resort and Residences. Located on the crescent of The Palm and next to the iconic Atlantis resort, this new generation of distinctive luxury will offer a sophisticated lifestyle experience, edgier than any resort in the region, with infinite ocean views, accented with lush green spaces, encapsulated in dramatic architecture.
“This next phase of Atlantis, including the luxury residences of The Royal Atlantis, will continue to drive the growth of Dubai forward,” commented H.E. Mohammed Ibrahim Al Shaibani, Executive Director and CEO of Investment Corporation of Dubai (“ICD”) and Chairman of Kerzner International. “This investment reaffirms ICD’s commitment to support the long-term growth of our domestic hospitality market, a key pillar and growth sector for the Dubai economy.” H.E. Mohammed Al Shaibani reiterated the importance of this investment for Dubai and its strengthening hotel and tourism industry as the Emirate prepares to host the Expo World Fair in 2020. (Press Release)

Calpers to Exit Hedge Funds

Posted on 16 September 2014 by VRS  |  Email |Print

The largest U.S. public pension plan is getting out of hedge funds as part of an effort to simplify its assets and reduce costs, a retreat that could prompt other cities and states to consider similar moves. The California Public Employees’ Retirement System said Monday it would shed its entire $4 billion investment in hedge funds over the next year.
The pension known by the abbreviation Calpers, which manages $298 billion in investments and benefits for 1.6 million current and retired police officers, firefighters and other public employees, is a bellwether for investment trends at other public plans. Any shift it makes will likely influence others because of its size and history as an early adopter of alternatives to stocks and bonds………………………………………..Full Article: Source

Temasek exchanges on GBP175mln City buy

Posted on 11 September 2014 by VRS  |  Email |Print

Temasek Holdings, a sovereign wealth fund owned by the Government of Singapore, has exchanged contracts on its purchase of a 50% stake in MidCity Place, heralding its debut purchase outside of Asia. Temasek has paid Beacon Capital Partners, advised by Eastdil Secured, just over £175m for the half share in the 336,901 sq ft EC1 office trophy, a deal first revealed by CoStar News last month.
The deal was secured following a close run bidding war against other sovereign wealth funds drawn to the quality of the asset and the opportunity to share the ownership of the building with Oxford Properties, which owns the other 50% interest………………………………………..Full Article: Source

GIC gives private equity firms run for their money

Posted on 05 September 2014 by VRS  |  Email |Print

Singapore’s GIC is taking the unusual step of investing directly in unlisted firms, a move bankers say will be mimicked by other sovereign wealth funds as low yields spur fund managers to adopt a more hands-on attitude in their search for higher returns. In the first half of this year, GIC agreed to pay up to US$310 million (RM985.8 million) for minority stakes in two unlisted Philippine companies — food producer Century Canning Corp and hospital group Metro Pacific Investment Corp.
While the investments in the Southeast Asian archipelago nation formed just a tiny sliver of GIC’s estimated US$30 billion private equity portfolio, they marked a departure from GIC’s approach of putting money in a private equity fund that would then invest on its behalf, or co-investing with a buyout firm………………………………………..Full Article: Source

Going direct: GIC gives private equity firms run for their money

Posted on 04 September 2014 by VRS  |  Email |Print

Singapore’s GIC is taking the unusual step of investing directly in unlisted firms, a move bankers say will be mimicked by other sovereign wealth funds as low yields spur fund managers to adopt a more hands-on attitude in their search for higher returns.
In the first half of this year, GIC agreed to pay up to $310 million for minority stakes in two unlisted Philippine companies: food producer Century Canning Corp and hospital group Metro Pacific Investment Corp………………………………………..Full Article: Source

Brigade, Singapore’s GIC to invest $248 mln in Indian property sector

Posted on 02 September 2014 by VRS  |  Email |Print

Indian developer Brigade Enterprises and Singapore’s sovereign wealth fund GIC Pte Ltd have agreed to jointly invest 15 billion rupees ($248 million) in residential real estate projects in south India, the companies said. Brigade and GIC will invest in acquiring land and building homes and for mixed-use projects, the companies said in a statement on Monday.
Sovereign wealth funds and other long-term investors are eyeing opportunities in India’s real estate sector, as property prices continue to drop on the back of the slowest economic growth in a decade for the country………………………………………..Full Article: Source

Asian titans move outside for specialist investments

Posted on 02 September 2014 by VRS  |  Email |Print

Growing allocations to alternatives and multiasset strategies have left the sovereign wealth funds and national pension plans that dominate Asia’s institutional investor landscape relying more on external money managers to manage their portfolios.
China Investment Corp. reported external managers overseeing 67.2% of the Beijing-based fund’s more than US$200 billion international portfolio as of Dec. 31, up from 63.8% the year before. Korea’s National Pension Service said 33.8% of its 442 trillion won (US$436 billion) investment portfolio was outsourced to external managers as of Dec. 31, up from 30.9% the year before………………………………………..Full Article: Source

Singapore’s GIC in final talks to buy Tokyo building for $2b: Sources

Posted on 26 August 2014 by VRS  |  Email |Print

Singapore’s sovereign wealth fund is in talks to buy a Tokyo office tower for about 170 billion yen (S$2.04 billion), three people with knowledge of the deal said, in what would be Japan’s biggest property transaction since the financial crisis.
Singapore’s GIC Pte, which already has a large presence in Japan’s property market, outbid the asset management unit of Goldman Sachs Group Inc, which also participated in the final bid for the property, which was put up for sale by Secured Capital, part of Asian private equity firm PAG……………………………………….Full Article: Source

Giant Norway Oil Fund Plans Bigger Push into Real Estate

Posted on 21 August 2014 by VRS  |  Email |Print

Norway’s sovereign wealth fund is shaking up its leadership, doubling the number of top executives to 12 and hiring more staff as it prepares a significant boost to its investments in high-end office and retail properties in cities such as London, Paris, and New York.
“Looking at our real-estate purchases in the recent three years, we’ve barely kept pace with the fund’s growth,” Norges Bank Investment Management Chief Executive Yngve Slyngstad told The Wall Street Journal in an interview Wednesday………………………………………..Full Article: Source

PE Has Lowest Return Among Alternative Assets For Korea Investment Corp.

Posted on 18 August 2014 by VRS  |  Email |Print

Private equity has generated an 8.6% return during 2013 for Korea Investment Corp.the lowest among all alternative asset classes that the Korean sovereign wealth fund invests in, KIC’s most recent annual report shows. The $72-billion fund is the latest sovereign wealth fund to release annual reports this month, following its counterparts in China and Singapore. Those reports offer a rare window into performance of historically secretive sovereign wealth funds, which are increasingly flexing their muscle in the private equity industry both as fund investors and as direct deal makers.
KIC got into private equity investing in 2009, and in 2010, entered real estate and hedge funds. According to its annual report, private equity has generated lower returns than the other two asset classes, on all three metrics that KIC uses to measure returns. For 2013, private equity returned 8.6%, compared with 9% and 9.5% for hedge funds and real estate, respectively………………………………………..Full Article: Source

CVC Looks To Cement Deal With Sovereign Funds

Posted on 13 August 2014 by VRS  |  Email |Print

The private equity firm CVC Capital Partners is joining forces with some of the world’s biggest sovereign wealth funds to bid for £4bn of cement assets that would make it a major player in the building materials sector.
Sky News has learnt that CVC is in discussions with Singapore’s Government Investment Corporation (GIC) about a combined offer for a package of businesses being sold by Holcim and Lafarge , the Swiss and French cement giants, as they look to seal a £32bn merger………………………………………..Full Article: Source

Korea’s NPS to invest $386 million through private equity

Posted on 08 August 2014 by VRS  |  Email |Print

The National Pension Service (NPS), South Korea’s sovereign wealth fund, will invest 400 billion Korean won (US$386 million) into a fund managed by Hamilton Lane, a US-based private equity firm. In April this year, the US house closed its Private Equity Fund VIII, a fund of funds vehicle with $426.8 million AUM, which exceeded its target size of $400 million.
In June, the NPS, which manages 436 trillion won, hired a US-based adviser for real estate investment in Asia, in order to further its exposure in a space expected to generate higher returns. Boosting property investment is part of the Seoul-based agency’s plan to increase its proportion of alternative investments - including infrastructure, property and private equity - to 11.3% of assets in 2014………………………………………..Full Article: Source

Singapore’s GIC upped asset exposure to PE, bonds & emerging mkt equities in FY14

Posted on 05 August 2014 by VRS  |  Email |Print

Singapore’s GIC, one of the most active sovereign wealth funds in India, upped its exposure to private equity as an asset class besides bonds and emerging markets equities for the year ended March 31, 2014, as per its annual report.
As per the report, GIC cut its exposure to developed economy equities to 29 per cent, from 36 per cent during the same period. Development market equities which used to be the single biggest class for GIC in FY13 fell below bonds last year. The sovereign fund also upped its exposure to inflation-linked bonds last year………………………………………..Full Article: Source

Norway’s oil fund buys Paris property for 425.6 mln euros

Posted on 04 August 2014 by VRS  |  Email |Print

Norway’s $870 billion oil fund purchased a retail and office property in Paris from BlackRock Europe Property Fund III for 425.6 million euros, it said on Friday.
The 31,500-square-metres Le Madeleine building on Boulevard de la Madeleine will be managed by AXA Real Estate, the fund, the world’s biggest sovereign wealth fund, said in a statement………………………………………..Full Article: Source

Sovereign wealth funds eye european real estate

Posted on 01 August 2014 by VRS  |  Email |Print

According to a survey by international real estate advisor Savills, sovereign wealth funds in 2013 accounted for total investment volumes worth €5.5bn in key European markets (Belgium, France, Germany, Ireland, Italy, Netherlands, Poland, Spain, Sweden and the United Kingdom). The total is a year on year increase of 30%.
The firm notes that the top five sovereign wealth funds identified by the report were from the Middle East and Asia, with an average deal size per investor group of €700m over the year, up from €247m in 2012. Among the firms surveyed is the Qatar Investment Authority, led by chief executive Ahmad Al-Sayed………………………………………..Full Article: Source

Norway’s Oil Fund Buys Into Boston Property

Posted on 29 July 2014 by VRS  |  Email |Print

Norway’s sovereign-wealth fund said Monday it had acquired a 47.5% stake in an office property at One Beacon Street in Boston, in a joint venture with U.S. life insurer MetLife Inc. Norges Bank Investment Management, which manages Norway’s $891 billion fund, usually referred to as the “oil fund,” said it had paid $122.3 million for the stake, and said the property was valued at $561.5 million. The transaction included $304 million of existing debt, NBIM said.
The 1 million-square-feet property consists of nearly 100% office space, with a small retail component housing a bank and a lunchtime diner, NBIM said, adding that MetLife will manage the property………………………………………..Full Article: Source

MetLife Joins Norway Fund in $561 Million Boston Deal

Posted on 29 July 2014 by VRS  |  Email |Print

MetLife Inc. (MET), the largest U.S. life insurer, added another Boston office tower to its real estate partnership with Norway’s sovereign-wealth fund, expanding their joint venture to about $2.4 billion.
MetLife and Norges Bank Investment Management acquired the One Beacon Street building for about $561 million, the New York-based company said today in a statement. The insurer will own 52.5 percent of the 34-story tower, with Norges Bank controlling the rest………………………………………..Full Article: Source

Norges Bank to acquire US office assets worth nearly $1bn

Posted on 23 July 2014 by VRS  |  Email |Print

Norges Bank Investment Management (NBIM), which manages Norway’s sovereign wealth fund, is in talks to buy two office buildings in the US for $915m (€677m), according to sources. The properties in Boston and San Francisco are being bought in joint ventures with US insurer MetLife and TIAA-CREF, respectively.
The Boston property – the 1m sqft One Beacon Street building – is expected to be sold for around $565m by Allianz Real Estate and Beacon Capital Partners, which bought the asset for its closed-end Strategic Partners IV fund in 2006………………………………………..Full Article: Source

GIC said to have backed out of Tokyo property deal

Posted on 16 July 2014 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC has backed out of buying a Tokyo property from Lone Star Funds due to a legal dispute over the property’s ownership, said people familiar with the transaction.
GIC earlier this year agreed to buy Meguro Gajoen, an office complex and a wedding hall, for about US$1.3 billion (S$1.61 billion). If finalised, it would be one of the largest property deals in Tokyo since the 2008 financial crisis. However, GIC is now cautious about completing the sale due to a lawsuit filed in April by the family of Meguro Gajoen’s founder, Mr Rikizo Hosokawa, said the sources………………………………………..Full Article: Source

Lone Star reopens Tokyo property deal as GIC talks stall

Posted on 16 July 2014 by VRS  |  Email |Print

Global buyout firm Lone Star Funds is looking for buyers for a complex of buildings in central Tokyo after exclusive talks with Singapore’s sovereign wealth fund GIC Pte Ltd stalled due to a legal dispute over the property’s ownership, according to three people with direct knowledge of the matter.
GIC earlier this year agreed to buy Meguro Gajoen, an office complex and a wedding hall, for about $1.3 billion which, if finalised, would be one of the largest property deals in Tokyo since the 2008 financial crisis. GIC, however, is now cautious about completing the sale due to a lawsuit filed in April by the family of Meguro Gajoen’s founder, Rikizo Hosokawa, said the sources, who declined to be named because the matter remains confidential………………………………………..Full Article: Source

Chasing Yield, Its Not Just Japan, SWFs Join The Hunt

Posted on 16 July 2014 by VRS  |  Email |Print

Real estate is a beneficiary, as is the stock market, and “they are taking money out of the debt markets,” says Barry Sternlicht, chairman and CEO, Starwood Capital. His last point is interesting considering the widespread low yields in government debt and corporate paper (if SWFs are selling, someone is buying). Anyway, like we’ve all heard others warn, Sternlicht brings up the “crowded trade” risk, but concludes that he doesn’t think rates are going anywhere globally because the world’s economies aren’t strong enough.
While some investors such as SWFs, pension funds, and retirees may absolutely need portfolio income, value investors and those that have long-term horizons with no immediate need or preference for income ought to ensure margin of safety first (that goes without saying, to which I will add opportunistically watching for compounders at very reasonable prices ………………………………………….Full Article: Source

Qatari Diar to Own Seef Lusail Real Estate Development

Posted on 15 July 2014 by VRS  |  Email |Print

Masraf Al Rayan announced yesterday it has entered into an agreement to sell its equity stake in Seef Lusail Real Estate Development Company. Seef Lusail Real Estate Development Company WLL was owned equally by Masraf Al Rayan and Qatari Diar Infrastructure Company.
In line with the agreement between the parties, Masraf Al Rayan has sold its 50 percent equity stake in Seef Lusail to Qatari Diar Infrastructure Company (49 percent) and Qatari Diar Real Estate Investment Company (1 percent). Adel Mustafawi,Group CEO of Masraf Al Rayan stated that this investment has achieved its objectives as planned………………………………………..Full Article: Source

Norway Outlines Staff Plan to Boost Real Estate Holdings

Posted on 08 July 2014 by VRS  |  Email |Print

The Norway Pension Fund-Global has begun recruiting for the team that will oversee an eventual 5% allocation of its $825 billion capital pool to real estate. Norges Bank Investment Management (NBIM), which oversees the asset allocation and implementation of strategy for the world’s largest sovereign wealth fund, has advertised three positions on its website—and the closing date is drawing near.
NBIM is looking for chief risk, administrative, and operations officers, who can choose to be located either in London or Oslo. All three positions would see the successful candidate become part of the fund’s Real Estate Leader Group……………………………………..Full Article: Source

Biggest Wealth Fund Forms New Real Estate Group

Posted on 07 July 2014 by VRS  |  Email |Print

Norway’s $890 billion sovereign wealth fund, the world’s biggest, is seeking top executives for a new real estate group that will invest almost $10 billion annually in properties over the next three years.
The fund, based in Oslo, is looking to hire new chief risk, operating and administrative officers for real estate, according to job postings on its website and in newspapers. The new executives will have “key roles in implementing a new organizational structure, and further develop our ability to invest and manage real estate assets,” the fund said………………………………………..Full Article: Source

Hyde Park Barracks inspected by Abu Dhabi wealth fund

Posted on 07 July 2014 by VRS  |  Email |Print

Hyde Park Barracks, historic home of the Household Cavalry, is being eyed by an Abu Dhabi sovereign wealth fund, the latest instance of Middle Eastern investors circling trophy assets in London. Property sources indicated the latest name to be associated with the site is Mubadala Development Company, a fund controlled by the government of Abu Dhabi.
The Ministry of Defence was initially approached by a raft of interested parties, including luxury property developer Christian Candy, in October last year, eager to secure the six-acre site………………………………………..Full Article: Source

ADIA expands alternative investment teams

Posted on 02 July 2014 by VRS  |  Email |Print

The Abu Dhabi Investment Authority (ADIA) has expanded its investment teams for illiquid asset classes such as real estate, infrastructure and private equity. The sovereign wealth fund also restructured its accounts department and recruited for its IT team, and says overall staff numbers rose to more than 1,500 at the end of last year, an increase of 100 compared with 2012.
“We have built out our investment teams in the illiquid space, such as real estate, infrastructure and, more recently, private equity, adding considerable expertise across geographies and asset specialisation,” says Hamed bin Zayed Al Nahyan, managing director, in the fund’s 2013 review………………………………………..Full Article: Source

Abu Dhabi fund ADIA bullish on infrastructure, alternative investments

Posted on 01 July 2014 by VRS  |  Email |Print

Abu Dhabi Investment Authority (ADIA), one of the world’s largest sovereign wealth funds, is bullish on infrastructure and alternative investments in 2014, it said on Tuesday after reporting its 20-year annualised returns fell last year. Headquartered in the capital of the United Arab Emirates, ADIA manages the surpluses of Abu Dhabi’s earnings from oil exports and has assets estimated at $773 billion by the Sovereign Wealth Fund Institute.
Publishing its annual review for 2013, which provides rare insights into ADIA’s broad strategy, the fund said alternative investments - those outside mainstream areas such as equities and bonds - achieved their overall target last year. Its hedge fund portfolio delivered strong results despite challenging market conditions………………………………………..Full Article: Source

Norway sovereign fund beefs up to buy more real assets

Posted on 27 June 2014 by VRS  |  Email |Print

Norway’s US$890 billion sovereign wealth fund, the world’s biggest, is building up its organisation and preparing for a move into infrastructure and private equity, its chief executive officer, Yngve Slyngstad, said.
The fund, in a strategy document released on Monday, revealed it was boosting its staff by about 60 per cent over the next three years to tackle increased investments in real estate and said it’s preparing for more investments in assets “with income streams that grow in line with the global economy”………………………………………..Full Article: Source

Sovereigns Boost Stakes in Alternatives, Emerging Markets

Posted on 27 June 2014 by VRS  |  Email |Print

Alternative investments continue to be winners of new global sovereign allocations, as do emerging markets — despite a fundamental preference for developed markets — according to a new study released Tuesday. Invesco’s second annual Invesco Global Sovereign Asset Management Study examined the investment behavior of sovereign investors across the globe.
The study was conducted among 52 individual sovereign investors, representing $5.7 trillion of assets, including standalone sovereign wealth funds, state pension funds, and central banks and government ministries………………………………………..Full Article: Source

Norway’s $890 Billion Fund Gears Up to Expand in Real Assets

Posted on 25 June 2014 by VRS  |  Email |Print

Norway’s $890 billion sovereign wealth fund, the world’s biggest, is building up its organization and preparing for a move into infrastructure and private equity, its chief executive officer said.
The fund, in a strategy document released yesterday, revealed it was boosting its staff by about 60 percent over the next three years to tackle increased investments in real estate and said it’s preparing for more investments in assets “with income streams that grow in line with the global economy.”……………………………………….Full Article: Source

Norwegian SWF plans $27bn expansion into real estate

Posted on 25 June 2014 by VRS  |  Email |Print

Norges Bank Investment Management (NBIM), the arm of Norway’s central bank responsible for managing the country’s $884 billion sovereign wealth fund, is set to establish a global real estate investment team to invest $27 billion over the next three years in private real estate.
NBIM today released its strategy through to 2016, saying the size of the management company will grow from 370 today to 600 over the period, including 200 dedicated to real estate investment. The majority of new hires, it said, will be investment professionals in the fund’s international offices………………………………………..Full Article: Source

Sovereign wealth funds like alternatives

Posted on 24 June 2014 by VRS  |  Email |Print

Sovereign wealth funds have increased allocations to alternative investments in the past year and expect to continue doing so in 2014, according to a study. The Invesco Global Sovereign Asset Management Study suggests this continued appetite for alternatives is a structural trend driven by the influence of allocating assets strategically, rather than a short-term shift due to tactical allocations to boost short-term returns.
First, many sovereign investors remain underweight in alternatives relative to their strategic asset allocation targets. These sovereign investors had increased their target allocations for alternatives in the last five years and had yet to reach these targets………………………………………..Full Article: Source

SWFs still allocating new money to alternatives, emerging markets

Posted on 24 June 2014 by VRS  |  Email |Print

Sovereign wealth funds are stepping up their investment in alternatives as well as in emerging markets, according to a new survey. Invesco’s latest annual Global Sovereign Asset Management study showed that, in 2013, alternative investments were still the asset classes receiving the highest new asset allocations from sovereign investor portfolios, continuing the trend from the year before.
It said 51% of sovereign investors raised their new exposure to real estate in 2013, and 28% lifted their new investment to private equity, relative to their whole portfolio………………………………………..Full Article: Source

Investors counting on property boom despite house price warning

Posted on 23 June 2014 by VRS  |  Email |Print

Survey finds sovereign wealth funds are placing more funds in property even though IMF has warned housing is overvalued. Global investors are betting on a substantial property boom despite warnings that housing in many countries is already overvalued.
According to a large study, sovereign wealth funds are seeking to boost returns by placing a larger proportion of their funds than last year in property, infrastructure projects and emerging markets. More than half of respondents said they increased their property portfolios to benefit from a long-term rise in land and real estate values in developed- and developing-world markets. The survey, by fund manager Invesco, found that while safer assets in the west remained the first choice of investors, the demand for bigger returns had accelerated investments in riskier assets………………………………………..Full Article: Source

Sovereign wealth funds ramp up alternatives exposure

Posted on 23 June 2014 by VRS  |  Email |Print

Sovereign wealth funds are increasingly investing new allocations to alternative asset classes, figures from the second annual Invesco Global Sovereign Asset Management Study show. The study was conducted amongst more than 50 individual sovereign investors across the globe, representing US$5.7 trillion of assets.
Alternative investments remain the clear asset class winners in terms of new asset allocation within sovereign investor portfolios, mirroring the trend reported in the 2013 study………………………………………..Full Article: Source

CBRE: Middle East SWFs To Spend $180 Billion on Real Estate Abroad

Posted on 17 June 2014 by VRS  |  Email |Print

Middle Eastern investors are expected to spend $180 billion on buying commercial property outside their own region over the next 10 years, according to new research from property advisor CBRE. A significant chunk of that investment – roughly $130-$140 billion – is expected to come from regional sovereign wealth funds, while investors, property companies and developers will account for the remaining amount, said CBRE.
Europe is the preferred target and is expected to receive 80 per cent of the $180 billion (around $145 billion) as it offers “diversification, cultural acceptance, high liquidity and market transparency,” said the report. While close to $85 billion will flow into the UK, $60 billion will be invested in continental Europe, with France, Germany, Italy and Spain among the key target markets………………………………………..Full Article: Source

Qatari Diar behind new Conrad Washington DC hotel

Posted on 12 June 2014 by VRS  |  Email |Print

Qatari Diar, the real estate development entity of the Qatar Investment Authority, has emerged as one of the parties behind the construction of the Conrad Washington, DC. The Hilton Worldwide-operated hotel is set to open in early 2018 and will part of the CityCenterDC project in the US capital.
Qatari Diar is working with international real estate firm Hines on the design and construction of the hotel and 70,000 square feet of large-format retail space. Slated to open in early 2018, the hotel will have 370 rooms and is being designed by Herzog & de Meuron Architekten and HKS Architects………………………………………..Full Article: Source

AusSuper grants London property mandate

Posted on 05 June 2014 by VRS  |  Email |Print

AustralianSuper has appointed TIAA Henderson Real Estate (TH Real Estate) to manage its London office property investment strategy. TH Real Estate, which is 60% owned by TIAA-CREF and 40% by Henderson Global Investors, already manages AustralianSuper’s UK shopping centre portfolio.
The arrangement with TH Real Estate is similar to that AustralianSuper negotiated with QIC last year over its US property investments. Rather than provide the fund manager with a lump sum to invest as it will, there is no set investment, and AustralianSuper will be more involved in investment decisions………………………………………..Full Article: Source

ADIA backs Freo, Halter to start CHF450m Mall of Switzerland

Posted on 03 June 2014 by VRS  |  Email |Print

Luxembourg-based developer and investment manager Freo, backed by a unit of the Abu Dhabi sovereign wealth fund ADIA, has joined with Zurich-based property firm Halter to start construction of the CHF450m (€369m) Mall of Switzerland near Lucerne.
Halter took over a stake in the project in the town of Ebikon from Swiss lift builder Schindler, plus an associated 73,000 sq.m. land reserve, enabling the building start, said Halter………………………………………..Full Article: Source

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