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Tata Capital in talks with Oman SGRF for realty fund

Posted on 19 February 2016 by VRS  |  Email |Print

Tata Capital, financial services arm of Tata Group, is in talks with Oman’s sovereign wealth fund, State General Reserve Fund (SGRF), to raise money for its real estate fund, said a source. The source added Tata Capital could raise as much as $300 million (Rs 2,000 crore) from the Oman fund but this could not be verified.
If it happens, it would be one of the largest in fund raising from an overseas entity in the country this year. Last year, Oman SGRF, with other investors, gave $375 mn to the offshore fund of HDFC Property Fund. Tata Capital was also in talks with large US investors but this did not finally go ahead, said sources. E-mails to Tata Capital and Oman SGRF did not get a response. Tata Capital is also looking to raise $900 mn across its two funds, Growth Fund and Opportunities Fund………………………………………..Full Article: Source

Bain, GIC, Advent buy $350m stake in Quest

Posted on 19 February 2016 by VRS  |  Email |Print

US private equity giant Bain Capital, Singapore’s GIC and Advent International have invested $350 million to buy minority stakes in Bengaluru-based engineering services company Quest Global.
The trio have completely bought out the shares held by global private equity firm Warburg Pincus that had invested $75 million in Quest for a 26% stake in 2010. Other sellers included some angel and minority investors. There was no fresh issue of shares, and therefore no infusion of funds into the company. TOI was the first to report the imminent deal in its edition on December 24 last year………………………………………..Full Article: Source

SOFAZ discloses income earned on real estate in London

Posted on 11 February 2016 by VRS  |  Email |Print

As of January 1, 2016, the State Oil Fund of Azerbaijan (SOFAZ) earned around 27 million pounds on real estate in London, SOFAZ said Feb. 10. The real estate, located at Saint James Street in London, was purchased by SOFAZ for 177.35 million pounds in 2012, the statement said.
“After the real estate was leased until late 2015, SOFAZ received income worth about 27 million pounds,” the statement said. “Currently, this real estate is estimated at 213 million pounds. Taking into account the high liquidity on the real estate market in London, this asset can be sold at a specified price within a short period.” In total, as of January 1, 2016, the yield on this asset amounted to more than 30 percent………………………………………..Full Article: Source

SOFAZ starts investing in real estate funds

Posted on 09 February 2016 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ, which accumulates and manages the energy-rich country’s oil and gas revenues, has started investing in real estate funds. SOFAZ told Trend that the share of investments that can be made in real estate has been increased from 5 to 10 percent.
“Direct investments were supposed to make up the first stage of SOFAZ’s investment strategy on real estate, and the Fund continues this activity successfully. Both the cash inflows generated from these investments and positive price difference make an important contribution to the profitability of the overall investment portfolio,” SOFAZ said………………………………………..Full Article: Source

Niam raises EUR800m for opportunistic Nordic real estate fund

Posted on 02 February 2016 by VRS  |  Email |Print

Nordic investment manager Niam has raised €800m ($870m) for its latest opportunity fund. The Stockholm-based private equity firm completed the final close for its sixth opportunistic property fund, Niam Nordic VI.
Public and corporate pension funds, sovereign wealth funds, endowments and family offices backed the vehicle. Niam said insurance companies, funds of funds and financial institutions also committed capital………………………………………..Full Article: Source

Arabian Gulf funds find Europe’s finest hotels still attractive as ever

Posted on 01 February 2016 by VRS  |  Email |Print

Despite the tumbling prices of oil, sovereign wealth funds from the UAE, Qatar and Kuwait are continuing to pour billions of dirhams’ worth of investment into some of Europe’s finest ­hotels. About US$5.2 billion of cash from Middle East investors has found its way into hotels in the United Kingdom and mainland Europe over the last 24 months, according to the property broker CBRE.
Last year alone, Middle East buyers spent three times as much on European hotels as they did at the height of the previous global property boom in 2007. The big-ticket buying spree from GCC investors includes three of London’s highest-profile hotels – Claridge’s, the Berkeley and the Connaught, which were bought in April last year by part of Qatar’s sovereign wealth fund………………………………………..Full Article: Source

Lendlease-ADIA to include 429 apartments in Paya Lebar project

Posted on 27 January 2016 by VRS  |  Email |Print

The consortium comprising Lendlease and Abu Dhabi Investment Authority (ADIA) that last year bagged a plum site in Paya Lebar Central, has obtained provisional permission from Singapore’s planning authority to build a project that will comprise offices, retail space as well as 429 apartments.
Going by market talk, the apartments are expected to be launched for sale probably next year. This will mark the first time the Australian group will be developing homes in Singapore. It has been operating here for more than four decades………………………………………..Full Article: Source

Sovereign wealth funds rise in private equity ranks

Posted on 25 January 2016 by VRS  |  Email |Print

Sovereign wealth funds have overtaken private pension funds to become the second-largest group of investors in private equity after a sustained increase in allocation to the asset class in the past two years.
Despite being few in number – Preqin tracks 76 globally – the government funds as a whole have $83.1 billion committed to the asset class as of January 2016, up from $79.8 billion in January 2014, according to the data provider. This comprises 17% of all capital committed to private equity, for the first time putting sovereign wealth funds ahead of private sector pension funds, which made up 15%………………………………………..Full Article: Source

KIC expands real estate investments

Posted on 19 January 2016 by VRS  |  Email |Print

The Korea Investment Corporation (KIC) has invested a combined 400 billion won ($330 million) to buy stakes in U.S. hotels as the Korean sovereign wealth fund seeks to diversify its investment portfolio, people familiar with the deal said Monday.
The KIC as a strategic investor has recently signed separate deals to invest in six five-star hotels, including Manhattan’s Ritz Carlton Hotel and San Francisco’s Four Seasons’ Hotel, they said. “The deals are part of a long-term strategic investment and do not involve management control of the hotels,” one of the people said………………………………………..Full Article: Source

Abu Dhabi SWF pins PE hopes on Dodge

Posted on 18 January 2016 by VRS  |  Email |Print

Sherwood Dodge has just become one of the most influential men in private equity (PE). The Abu Dhabi Investment Authority (ADIA) has just announced that it has appointed the former Deputy CEO of Hyundai Capital Services and Hyundai Card as global head of private equities in its private equities department. According to the Sovereign Wealth Fund Institute’s (SWF Institute) estimate, ADIA had roughly US$773 billion of assets under management in 2014 – exceeded only by Norway’s $855.4 billion Government Pension Fund Global.
Dodge, previously CEO of GE Capital’s equities business in Americas, where he led its PE activities, and GE Capital head of corporate development, will henceforth be handling the PE share of that huge capital pool………………………………………..Full Article: Source

Is Property Too Expensive, This Sovereign Wealth Fund Says Yes

Posted on 13 January 2016 by VRS  |  Email |Print

Norway’s sovereign wealth fund plans to invest more in real estate. But right now, it thinks prices are too high. Is a source of growth capital about to dry up for REITs? The Wall Street Journal noted that Norway’s sovereign wealth fund is worried about property prices.
That’s the same concern that many real estate investment trust, or REIT, CEOs have been voicing for a while now. Worse, Norway is planning to pull back on its property investment plans, which, if other big investors follow suit, could be a problem for REITs that have been working with them………………………………………..Full Article: Source

KIC wraps up a property acquisition in Germany for US$1.41 billion

Posted on 07 January 2016 by VRS  |  Email |Print

Korea’s sovereign wealth fund Korea Investment Corp (KIC) has joined hands with Canadian alternative asset manager Brookfield Asset Management to acquire a commercial and retail property project in Germany from real estate investment firm Savills for about 1.3 billion euros (US$1.41 billion).
According to a report from the Korea Economic Daily, KIC is said to have taken an 18% stake in the project and it has planned to invest about 300 billion won (US$252 million) in the project. The buildings are located in Potsdamer Platz in downtown Berlin, which consists of seven commercial buildings, five residential buildings, a shopping center with 30 restaurants, a movie theater, a concert hall, and a hotel. The transaction is the largest real estate deal in Germany since 2008………………………………………..Full Article: Source

Abu Dhabi, Qatar funds invest in Milan properties

Posted on 07 January 2016 by VRS  |  Email |Print

Government investment funds Abu Dhabi and Qatar, as well as in Azerbaijan, have invested a combined $380 million in three different properties in Milan. Wall Street Journal reported that Abu Dhabi Investment Authority has agreed to buy a 1960s building in the north Italian city, which the newspaper says will be demolished and replaced by a new tower.
Late last month, Qatar Investment Authority completed a deal to acquire the historical building that housed BNL’s (a subsidiary of BNP Paribas) headquarters in Piazza San Fedele in Milan………………………………………..Full Article: Source

Middle East investors home in on London property for secure income

Posted on 07 January 2016 by VRS  |  Email |Print

Rasheed Hassan, director of cross-border investment at Savills, said there had been an increase in private wealth flowing from the Middle East in addition to investment by institutions such as sovereign wealth funds. “We’re seeing a lot of enthusiasm from private investors from across the region, seeking income-generating deals in London and the UK regions,” he said.
Qatar’s sovereign wealth fund meanwhile bought the Berkeley and Claridge’s hotels for more than £600m each in April. That followed the purchase of east London’s Canary Wharf skyscraper cluster in a joint venture with Canada’s Brookfield for £2.6bn………………………………………..Full Article: Source

Azerbaijan’s SOFAZ purchases real estate in Italy

Posted on 07 January 2016 by VRS  |  Email |Print

Azerbaijan’s oil fund SOFAZ jointly with the sovereign-wealth funds of Abu Dhabi and Qatar agreed to invest a combined 350 million euros ($380 million) to buy and develop three separate properties in Milan.
SOFAZ is buying a building from the Italian chamber of commerce, while the Abu Dhabi Investment Authority is buying a 1960s building that will be demolished to make way for a new tower, the Wall Street Journal reported citing a person familiar with the transactions. The Qatar Investment Authority agreed to buy a property from BNP Paribas SA in late December. The purchase prices weren’t disclosed………………………………………..Full Article: Source

Sovereign-Wealth Funds Agree to Invest $380 Million in Italian Property

Posted on 06 January 2016 by VRS  |  Email |Print

Sovereign-wealth funds are picking up Italian real estate as the nation’s economy recovers. Government investment funds in Azerbaijan, Abu Dhabi and Qatar in the past two weeks have agreed to invest a combined €350 million ($380 million) to buy and develop three separate properties in Milan, according to a person familiar with the transactions.
The Abu Dhabi Investment Authority is buying a 1960s building that will be demolished to make way for a new tower, and the State Oil Fund of the Republic of Azerbaijan is buying a building from the Italian chamber of commerce, the person said. On Dec. 22, the Qatar Investment Authority agreed to buy a property from BNP Paribas SA………………………………………..Full Article: Source

Funds set to extend investment spree in real estate

Posted on 06 January 2016 by VRS  |  Email |Print

Government of Singapore Investment Corp. Pte Ltd (GIC), a sovereign wealth fund, Blackstone Group Lp and Warburg Pincus Llc were the heaviest investors. Blackstone, India’s largest owner of office assets, purchased an office project in suburban Mumbai for about Rs.1,060 crore, while an affiliate of Warburg Pincus picked up a minority stake in Piramal Realty, the real estate development arm of Piramal Group, for Rs.1,800 crore.
The latter was one of the largest single investments in a real estate firm in recent years. GIC struck one of the largest transactions in 2015, where it invested Rs.1,990 crore in two projects of DLF Home Developers Ltd, a DLF subsidiary, as the two entered into a joint venture………………………………………..Full Article: Source

Brookfield Acquires Potsdamer Platz in Berlin for $1.4 Billion

Posted on 05 January 2016 by VRS  |  Email |Print

Real-estate firm teams with Asian sovereign-wealth fund to buy 17 buildings on major public square. Brookfield Property Partners LP has bought another major slice of a European capital city, in partnership with a sovereign-wealth fund.
Brookfield bought a major London business district, Canary Wharf, last March together with Qatar’s state-backed investment fund for £2.6 billion ($3.8 billion)………………………………………..Full Article: Source

Brookfield and KIC buy Berlin real estate

Posted on 04 January 2016 by VRS  |  Email |Print

Berlin’s real estate complex at Potsdamer Platz — where five of the city’s broad avenues converge near the Brandenburg Gate — has been bought by a subsidiary of Brookfield Property Partners and the state-owned Korea Investment Corporation in a €1.3bn deal.
In the 1920s and 1930s, Potsdamer Platz was the single busiest intersection in the world, according to Ric Clark, chairman of Brookfield Property Partners, who led the purchase. His company now plans to give the area — which is mainly frequented by tourists — a facelift, in order to attract new tenants for its 2.9m square feet of offices, retail space, apartments and arts facilities………………………………………..Full Article: Source

Wealth funds invested 60% more in real estate this year

Posted on 29 December 2015 by VRS  |  Email |Print

Sovereign funds had invested $1.9 trillion in equities and $900 billion in fixed income and short-term liquid assets at the end of 2014, according to Moody’s. They allocated just $400 billion to alternative investments including real estate, infrastructure, private equity and hedge funds, the ratings company said.
Real estate is particularly attractive after it returned an average of 14.1 percent last year for the funds, almost double their 7.4 percent target, according to a survey by Cornell University and advisory firm Hodes Weill & Associates published Dec. 2………………………………………..Full Article: Source

Kazakhstan looks to up sovereign real estate investments

Posted on 29 December 2015 by VRS  |  Email |Print

The Central Asian nation of Kazakhstan is seeking to boost returns on a possible $93 billion in wealth funds, and some of real estate’s biggest private equity players could be the beneficiaries.
Kazakhstan’s $64 billion National Fund has struggled to achieve an average return of 2 percent annually for the past five years, and Central Asia’s largest energy exporter is looking to real estate and other alternative investments as the price of oil flirts with an 11-year low and returns from commodities slump to levels last seen in 1999………………………………………..Full Article: Source

Qatar Investment Authority to be stakeholder in $8.6 billion Manhattan West project

Posted on 28 December 2015 by VRS  |  Email |Print

A joint venture was recently formed between Brookfield Property Partners LP and Qatar Investment Authority (QIA) for a Manhattan West development project in New York City. The estimated value of the completed project is $8.6 billion, with Brookfield selling a 44 percent interest in the development to QIA.
“Brookfield has enjoyed a long-standing, successful relationship with QIA and we are thrilled that they share our vision for this transformative project,” Brookfield Asset Management CEO Bruce Flatt said. “We are pleased to expand our relationship with Brookfield and invest in this world-class project,” Qatar Investment Authority CEO Sheikh Abdulla Bin Mohammed Bin Saud Al-Thani said………………………………………..Full Article: Source

Norway SWF names CEO of real estate group

Posted on 18 December 2015 by VRS  |  Email |Print

Norway’s $840 billion sovereign wealth fund named Karsten Kallevig as the head of its new real estate group, formed this summer to expand the fund’s real estate footprint worldwide. Kallevig joined Norges Bank Investment Management, a division of Norway’s central bank that manages the country’s substantial oil wealth, in 2010 and helped Norges amass an $18 billion real estate portfolio.
In New York City, Norges is in contract to partner on Trinity Real Estate’s 11-building Hudson Square portfolio, in a deal that values the real estate at $3.55 billion. Norges will pay $1.56 billion for a 44 percent share in a 75-year ownership stake………………………………………..Full Article: Source

Norway’s wealth fund has spent $23.7 bln in property in 2015

Posted on 18 December 2015 by VRS  |  Email |Print

Norway’s $845-billion sovereign wealth fund, the world’s largest, has invested 208 billion crowns ($23.73 billion) in real estate in 2015, the fund said on Friday in presentation material.
The fund has a mandate to invest up to 5 percent of its value in real estate. ($1 = 8.7644 Norwegian crowns)……………………………………….Full Article: Source

Canadian-Abu Dhabi venture buys $3 bln real estate portfolio

Posted on 18 December 2015 by VRS  |  Email |Print

A joint venture between Canadian pension fund PSP Investments and the Abu Dhabi Investment Authority has acquired a portfolio of U.S. industrial properties from Exeter Property Group for $3.15 billion, the buyers said. Canadian pension funds and sovereign wealth funds are looking to buy real estate assets to diversify their investments and offset the effects of volatility in global equity markets and economic uncertainty.
“This investment is consistent with PSP Investments’ real estate strategy to make direct investments in sizeable, core industrial assets in key markets alongside experienced partners who share our long-term investment horizon,” said Neil Cunningham, PSP’s global head of real estate investments………………………………………..Full Article: Source

Mideast SWFs strike 38 global realty deals worth $65bn in 9 months to Sept

Posted on 16 December 2015 by VRS  |  Email |Print

Sovereign wealth funds (SWFs) in the Middle East remained “active purchasers” of global real estate this year with some 38 deals worth $65bn transacted in nine months up to September, data available with JLL, a real estate investment and advisory firm, show.
While the number of overseas transactions has declined from the 74 deals seen in 2013, the value of investment has remained high and is likely to exceed that experienced in 2014, JLL said. “The volume of investment is expected to decline in 2016 as we enter a prolonged period of lower oil prices that will cause sovereigns to reconsider their objectives and strategies,” JLL said………………………………………..Full Article: Source

Asian institutional funds to channel US$240 billion into world’s property market by 2020, CBRE says

Posted on 16 December 2015 by VRS  |  Email |Print

Asia Pacific institutions, which include sovereign wealth funds, pension funds and insurance companies are sitting on a combined war chest of nearly US$15 trillion as of the start of 2015, according to CBRE.
Asia Pacific institutional investors, including those from Hong Kong and mainland China, are expected to pump US$240 billion into global property by 2020, according to a survey by CBRE. About US$260 billion has already been allocated by regional investors into the global property market. Traditionally, pension funds and other institutional investors have channelled funds into corporate and government bonds, among other investments, although a need for greater diversification is behind the drive for global real estate, CBRE said………………………………………..Full Article: Source

Oman’s sovereign wealth fund swoops on Hilton hotel portfolio

Posted on 11 December 2015 by VRS  |  Email |Print

The sovereign wealth fund of Oman is set to buy a portfolio of prime Hilton hotels located in Europe’s key cities in a deal worth €380m (£275m). The Middle Eastern fund is close to agreeing a deal to acquire the properties, dubbed the Napoleon portfolio, from a joint venture between US hedge fund Baupost and Westmont Hospitality Group.
All except one of the eight properties are located in mainland Europe and include Hilton-branded hotels in Dresden, Düsseldorf and Luxembourg, as well as the Hilton at Charles de Gaulle airport in Paris. The rest are located in Zurich, Strasbourg and Barcelona, as well as the Los Zocos Club resort in the Canary Islands………………………………………..Full Article: Source

How Norway’s SWF Plans to Benchmark Real Assets

Posted on 10 December 2015 by VRS  |  Email |Print

The world’s biggest sovereign wealth fund has published proposals to overhaul its benchmarking process in preparation for entering infrastructure markets for the first time. Norges Bank Investment Management (NBIM), which runs the $846 billion Norwegian Government Pension Fund—Global, has also formally recommended that the country’s finance ministry permit doubling the SWF’s real estate allocation and buy infrastructure assets.
“The benchmark model is not well-suited to the fund’s investments in unlisted assets,” NBIM wrote in its submission to the ministry. “NBIM’s proposed changes aim to address the challenges this presents, while also retaining the key features of the current division of responsibility between the ministry and NBIM.”……………………………………….Full Article: Source

World’s Biggest Wealth Fund Given Property Push

Posted on 09 December 2015 by VRS  |  Email |Print

Norway’s sovereign-wealth fund should be given the leeway to plow more money into real estate and further diversify its portfolio by investing a chunk of its $850 billion in infrastructure, a government-commissioned expert group said. The fund, managed by Norway’s central bank and commonly referred to as the oil fund, should be allowed to invest up to 10% of its value in infrastructure and to raise its real-estate portfolio to 10% from a current ceiling of 5%, the group said in a report published Tuesday.
The government “should open up for unlisted infrastructure investment in the management mandate to Norges Bank to take advantage of investment opportunities unavailable in the listed space,” said the group, which was led by Prof. Stijn Van Nieuwerburgh at New York University………………………………………..Full Article: Source

1MDB close to finalising sale of Bandar Malaysia, says report

Posted on 08 December 2015 by VRS  |  Email |Print

Debt laden 1Malaysia Development Bhd (1MDB) may soon be closing its final deal on the 60% stake of Bandar Malaysia’s project to remove its debt burden, according to a news report. The Singapore’s Straits Times reported that the China-backed consortium led by Malaysia’s Iskandar Waterfront Holdings (IWH), which is controlled by the property tychoon Tan Sri Lim Kang Hoo, is the frontrunner for the stake of more than RM11 billion.
The report said the state investment firm is in the final stages of selling its 60% of the township project in Kuala Lumpur. The deal could be announced this week, coinciding with the annual Umno general assembly. According to The Straits Times, a China-backed consortium led by IWH is learnt to be the front runner to take the controlling stake of Bandar Malaysia, which is valued at more than RM11 billion………………………………………..Full Article: Source

1MDB close to deal on KL township sale

Posted on 07 December 2015 by VRS  |  Email |Print

State investment firm 1Malaysia Development Bhd (1MDB) is in the final stages of selling 60 per cent of a giant township project in Kuala Lumpur, the final piece of a plan to wipe out its mountain of debts and bring cheer to Prime Minister Najib Razak.
The stake sale in 197ha Bandar Malaysia has implications for the high-speed rail (HSR) link to Singapore as the Malaysian end of the network will end in the township and raise its profile as the capital city’s new transport hub………………………………………..Full Article: Source

Tokyo building put up for sale for more than US$1.3bil

Posted on 04 December 2015 by VRS  |  Email |Print

A group led by property investor Asia Pacific Land (APL) has put an aged but large office building in central Tokyo on sale, expecting to fetch more than 160 billion yen (US$1.3bil), three people with knowledge of the deal said. The group, which is taking advantage of a quick recovery of Tokyo’s property market, is expecting to sell the property to investors who would seek long term stable returns from properties, which include Japanese corporations and sovereign wealth funds, the people said.
Global sovereign wealth funds are expanding their presence in Tokyo as they seek stable returns from a city whose vacancy rates are falling and where office rents are expected to grow further. Last year Singapore’s sovereign wealth fund GIC Pte bought a Tokyo high-rise office tower for about 170 billion yen………………………………………..Full Article: Source

Abu Dhabi Investment Authority, General Growth Properties Inc’s insider Sold 42,489 Shares

Posted on 03 December 2015 by VRS  |  Email |Print

According to a legal document that was filled with the Washington-based Security and Exchange Commission on December 1, 2015, Abu Dhabi Investment Authority an insider in General Growth Properties Inc, made a sale of shares worth $1,097,181 USD in the public firm.
Abu Dhabi Investment Authority disposed 42,489 new shares, at average $25.8 per share. In the last 30 days, Abu Dhabi Investment Authority also sold shares that are worth $ USD. Abu Dhabi Investment Authority now has rights to 38.47 million shares or 10%+ of General Growth Properties Inc’s market cap………………………………………..Full Article: Source

Tokyo office building put up for sale for more than $1.3 bln

Posted on 02 December 2015 by VRS  |  Email |Print

A group led by property investor Asia Pacific Land (APL) has put an aged but large office building in central Tokyo on sale, expecting to fetch more than 160 billion yen ($1.3 billion). APL acquired the Shiba Park Building in 2013 for more than 125 billion yen along with U.S. insurance magnate Maurice “Hank” Greenberg, the Abu Dhabi Investment Council and Hong Kong-based alternative investor PAG.
Global sovereign wealth funds are expanding their presence in Tokyo as they seek stable returns from a city whose vacancy rates are falling and where office rents are expected to grow further. Last year Singapore’s sovereign wealth fund GIC Pte bought a Tokyo high-rise office tower for about 170 billion yen. Earlier this year sovereign wealth fund China Investment Corp provided most of the capital for a more than 100 billion yen acquisition of an office and retail complex in Tokyo………………………………………..Full Article: Source

Norway SWF Pact with Trinity Real Estate

Posted on 02 December 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund put pen to paper on a $1.56B contract for a 44% share in Trinity Real Estate’s 11-building Hudson Square portfolio. The 75-year contract values the church’s 5M SF portfolio at $3.55B. It’s expected to close by the end of the year, The Real Deal reports. The partnership with Trinity Church expands Norges Bank Investment Management’s US commercial real estate portfolio.
The fund is already one of the biggest foreign buyers of US real estate in the world, making two major acquisitions earlier this year with a 45% interest in the Citigroup Center on Manhattan’s Lexington Avenue for $725M, followed by a 49% stake in 11 Times Square………………………………………..Full Article: Source

GIC looking to buy more real estate assets

Posted on 27 November 2015 by VRS  |  Email |Print

GIC, which manages more than US$100 billion (S$141 billion) of Singapore’s reserves, is “underinvested” in property and interested in transactions of scale even as it faces an increasingly difficult investment environment.
GIC has about 7 per cent of assets in real estate, while it can invest 9 per cent to 13 per cent, GIC Real Estate president Goh Kok Huat said in his keynote speech at a conference organised by the Asia Pacific Real Estate Association………………………………………..Full Article: Source

GIC ‘underinvested’ in real estate, eyes deals in key gateway cities

Posted on 26 November 2015 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC on Wednesday said that it is “underinvested” in property. Real estate currently makes up 7 per cent of its asset mix. It plans to raise this proportion to 9-13 per cent. It will do so by looking at big transactions in deep and liquid markets in key gateway cities. Emerging markets will also be important for its long-term strategy, notwithstanding short-term geopolitical risks.
GIC will also continue to partner global players, including private equity firms and other sovereign wealth funds, on bigger deals as competition heats up for global assets………………………………………..Full Article: Source

GIC looking to buy more real estate assets

Posted on 26 November 2015 by VRS  |  Email |Print

GIC, which manages more than US$100 billion (S$141 billion) of Singapore’s reserves, is “underinvested” in property and interested in transactions of scale even as it faces an increasingly difficult investment environment.
GIC has about 7 per cent of assets in real estate, while it can invest 9 per cent to 13 per cent, GIC Real Estate president Goh Kok Huat said in his keynote speech at a conference organised by the Asia Pacific Real Estate Association……………………………………….Full Article: Source

China’s top cities to see home prices rise amid demand, says GIC

Posted on 26 November 2015 by VRS  |  Email |Print

Home prices in Beijing and Shanghai, which have surged this year, have room to rise further as the inflow of residents bolsters demand in China’s biggest cities, said the head of real estate investments at Singapore’s sovereign wealth fund.
Despite some short-term volatility, the long-term outlook for the China’s real estate market is solid given its growth prospects, Goh Kok Huat, president of GIC Pte’s real estate unit, said in an interview on Wednesday with Bloomberg Television’s Haslinda Amin in Singapore. Retail properties face consolidation in China’s cities as more consumers turn to online shopping, he said………………………………………..Full Article: Source

Singapore’s sovereign fund GIC likes properties here

Posted on 26 November 2015 by VRS  |  Email |Print

GIC, Singapore’s sovereign wealth fund, is taking a long view on its real-estate investments, particularly eyeing emerging markets despite recent turmoil, the president of the fund’s property division said. The usually tight-lipped fund has plenty of dry powder to pursue property deals.
he fund, which manages upwards of $100 billion, has an allocation of 9-13 percent of its portfolio toward property, but at the moment only around 7 percent has been invested in the segment. GIC’s property portfolio has more than 350 investments in over 40 countries. GIC’s mandate bars it from investing in Singapore’s property market………………………………………..Full Article: Source

Blackstone sells London NYC to Abu Dhabi fund for $382M

Posted on 26 November 2015 by VRS  |  Email |Print

The Abu Dhabi Investment Authority, the nation’s sovereign wealth fund, has added to its portfolio of Manhattan hotels. The fund paid $382 million, or $678,000 per room, to the Blackstone Group for the leasehold for the 563-key London NYC Hotel at 151 West 54th Street, between Sixth and Seventh avenues in Midtown.
Of that total, $194 million paid for the property itself, with the remaining $154 million made on the building’s debt. As per the lease agreement, the ADIA will pay $157 million to the Sol Goldman estate through 2136. Roy March, Larry Wolfe and Mark Schoenholtz of Eastdil Secured represented Blackstone in the deal………………………………………..Full Article: Source

Qatar Investment Authority eyes Paris and Tokyo

Posted on 24 November 2015 by VRS  |  Email |Print

Qatar Investment Authority (QIA) and Ascott’s Serviced Residence Global Fund are set to invest US $137 million in assets in Paris and Tokyo. The fund has acquired two prime properties in Paris and Tokyo for $104 million, adding Citadines Suites Champs-Élysées Paris – former private residence of Hennessy family – and Somerset Shinagawa Tokyo to the portfolio.
A further investment of $33 million will convert the office building in Paris into a luxury serviced residence, and will embark on asset enhancement to reposition the serviced residence in Tokyo, bringing the total investment to $137 million………………………………………..Full Article: Source

GIC to increase exposure to UK property market, exploring Africa

Posted on 24 November 2015 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC will be looking to increase its exposure to the UK property market particularly in commercial real estate. A state investment major, GIC is one of the wealthiest global state funds with its real estate arm owning properties across 40 countries, overseen by 150 employees in nine offices.
In a report by the Wall Street Journal, Goh Kok Huat, COO and president of real estate at GIC, said, “We are not pulling back from the U.K. We are still open for business.” Spoken on the sidelines of the IPD/IPF Property Investment Conference, Goh expressed interest in increasing GIC’s holdings in London, given that the UK property market has become a focal point for global investors hunting for yield amid low interest rates………………………………………..Full Article: Source

Norway’s Government Pension Fund Global acquires property in New York

Posted on 24 November 2015 by VRS  |  Email |Print

Norges Bank Investment Management has acquired a 44 per cent share in a property portfolio in New York City on behalf of the Government Pension Fund Global.
The portfolio comprises of 11 office properties, in a joint venture with Trinity Wall Street. It cost US $1.56bn (€1.47bn), with the total value of the portfolio at US $3.55bn (€3.33bn) and gives the fund a 75-year ownership interest. The binding agreement was signed 20 November 2015 and is expected to close before year-end 2015………………………………………..Full Article: Source

Is IPIC main investor in Yurus Private Equity Fund?

Posted on 18 November 2015 by VRS  |  Email |Print

Answer the questions on the USDD69 million (RM300 million) proceeds that the Yurus Private Equity Fund earned in less than six months, Kelana Jaya MP Wong Chen has urged 1MDB-DuSable. This comes following the recent Wall Street Journal (WSJ) report that the investor in the Yurus Private Equity Fund is Aabar Investments PJS, a subsidiary of Abu Dhabi sovereign-wealth fund International Petroleum Investment Co (IPIC).
“This revelation is worrying as it raises questions whether the USD$69 million deal was done at an arms-length basis,” he said, referring to how IPIC is currently involved in a USD3.5 billion financing deal to help 1MDB’s rationalization scheme. He wants 1MDB-DuSable to confirm the WSJ report on whether IPIC is the main investor and whether the deal was done at an arms-length basis, and asked them to disclose how much money DuSable made from the deal………………………………………..Full Article: Source

Ascott-QIA global fund acquires two prime properties

Posted on 12 November 2015 by VRS  |  Email |Print

The Ascott’s serviced residence global fund with 50:50 partner Qatar Investment Authority (QIA) has acquired two prime properties in Paris and Tokyo for US$104 million (S$148 million). The Ascott is the wholly-owned subsidiary of mainboard-listed Singapore property heavyweight CapitaLand.
The fund will invest another US$33 million to convert the office building in Paris, previously the private residence of the famous Hennessy family, into a luxury serviced residence as well as embark on asset enhancement to reposition the serviced residence in Tokyo, bringing the total investment to US$137 million, CapitaLand and The Ascott said yesterday in a joint release………………………………………..Full Article: Source

Norway SWF Sets Out Case for Real Estate Expansion

Posted on 10 November 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund has made the case for tripling its target for real estate investment to 15% of its $854 billion portfolio. Norges Bank Investment Management (NBIM)—which manages the Norway Government Pension Fund Global—published two research papers on Friday detailing the case for expanding its investments in property.
In one paper, “The Diversification Potential of Real Estate”, the fund’s staff analysed 30 studies into real estate allocations. The median allocation recommended by the 30 studies was 15%. “The vast majority of academic studies come to the conclusion that adding real estate does improve the risk-return profile of a mixed asset portfolio,” the fund said………………………………………Full Article: Source

Norway’s state fund may invest US$4b on global property in 2015

Posted on 10 November 2015 by VRS  |  Email |Print

Norway’s US$860 billion sovereign wealth fund may invest more than US$4 billion in property worldwide this year, breaking the record it set last year, its chief executive said, as the fund builds up its portfolio of real estate.
The fund invests Norway’s revenues from oil and gas production in stocks, bonds and property. The latter - mostly commercial real estate - represented 3 per cent of the fund’s total value at the end of the third quarter but will reach 5 per cent over time. Last year, the fund invested a record 36 billion crowns (HK$32.1 billion) in net real estate purchases, CEO Yngve Slyngstad told a seminar on Friday, and may be on track this year to do more………………………………………Full Article: Source

Norway’s Wealth Fund Targets Major Cities After Bonds Hit Zero

Posted on 09 November 2015 by VRS  |  Email |Print

Relentless monetary easing across the rich world is driving the biggest sovereign wealth fund away from debt markets as it instead targets real estate investments in mega cities. Chief Executive Officer Yngve Slyngstad says the meager returns bonds offer mean the $860 billion wealth fund needs to look elsewhere to meet its 4 percent return target.
At the same time, a study published on Friday by the fund shows there’s an argument for tripling its real estate investment to 15 percent of the total portfolio. Lars Dahl, chief risk officer for real estate at the wealth fund, says the best property to invest in now is to be found in the world’s biggest cities………………………………………..Full Article: Source

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