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China Investment Corp. buys $700M stake in 1 NY Plaza

Posted on 24 May 2016 by VRS  |  Email |Print

Chinese sovereign wealth fund China Investment Corp. picked up a 49 percent stake in Brookfield Property Partners’ office tower at 1 New York Plaza in the Financial District. In the latest instance of foreign investment driving the city’s commercial real estate market, CIC paid around $700 million for its minority interest in the 50-story, 2.6 million-square-foot tower, valuing it at roughly $1.4 billion.
Brookfield will maintain a controlling stake in the office building, according to Crain’s. The Toronto-based company announced that it had sold the 49 percent stake to an unnamed buyer in its quarterly earnings call earlier this month………………………………………..Full Article: Source

Angola SWF raised private equity investment, trims debt exposure in 2015

Posted on 23 May 2016 by VRS  |  Email |Print

Angola’s sovereign wealth fund increased its investments in private equity focused on sub-Saharan Africa last year and sharply cut exposure to developed market bonds, the fund said in a statement published on Thursday. The fund said it had $4.7 billion under management at the end of last year, while audited results posted on its website showed it had $4.88 billion at the end of 2014.
The fund, known by its Portuguese acronym FSDEA, said 58 percent of the portfolio was invested in funds holding private equity – or unlisted securities and debt – in infrastructure, real estate, agriculture, timber, healthcare, mining and mezzanine capital, according to its investment update………………………………………..Full Article: Source

Angola Wealth Fund Says Half of Investments in Private Equity

Posted on 20 May 2016 by VRS  |  Email |Print

Angola’s sovereign wealth fund said it put more than half of its investments in private equity funds focused in the country and across sub-Saharan Africa last year, describing its performance as “solid,” particularly in light of the global economic turbulence.
The fund, known as FSDEA, had assets worth $4.7 billion in 2015 after being endowed with $5 billion from the government in 2014, according to an investment update released on Thursday. About 58 percent of its portfolio was in private equity funds for infrastructure, real estate, timber, mining, health care and mezzanine capital………………………………………..Full Article: Source

Angola SWF raised private equity investment, trims debt exposure in 2015

Posted on 20 May 2016 by VRS  |  Email |Print

Angola’s sovereign wealth fund increased the amount of funds earmarked for private equity investments focused on sub-Saharan Africa last year and sharply cut exposure to developed market bonds, the fund’s chairman said on Thursday. The fund had $4.7 billion under management at the end of last year, chairman Jose Filomeno dos Santos said, while audited results posted on its website showed it had $4.88 billion at the end of 2014.
The fund, known by its Portuguese acronym FSDEA, had $2.7 billion or 58 percent of its portfolio allocated for investments in private equity - unlisted securities and debt - in infrastructure, real estate, agriculture, timber, healthcare, mining and mezzanine capital, according to dos Santos………………………………………..Full Article: Source

Bahrain Sovereign-Wealth fund Buys Stake in Office Buildings in Phoenix and Dallas

Posted on 20 May 2016 by VRS  |  Email |Print

For the past few years, foreign investors have poured money into U.S. commercial property—but in only a small handful of cities such as New York, Los Angeles and San Francisco. Now one big foreign investor is looking further afield.
The sovereign-wealth fund of Bahrain on Thursday bought a 49% stake in a portfolio of seven office buildings spread between Phoenix and Dallas, according to the fund and Regent Properties, which sold the stake and owns the remainder………………………………………..Full Article: Source

Mumtalakat Announces Partnership with Regent Properties to Acquire Interest in a Portfolio of Commercial Real Estate Assets in the United States

Posted on 20 May 2016 by VRS  |  Email |Print

Bahrain Mumtalakat Holding Company (Mumtalakat), the investment arm of the Kingdom of Bahrain, today announces its partnership with Regent Properties (Regent) through which Mumtalakat is acquiring an interest in an existing portfolio of high-quality commercial real estate assets in the United States currently managed by Regent.
Regent Properties is a real estate development and investment firm based in Los Angeles, California. The aggregate value of the Portfolio is approximately $250 million and is comprised of 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. (Press Release)

KIC to appoint domestic managers for offshore alternative mandates

Posted on 16 May 2016 by VRS  |  Email |Print

Korea’s sovereign wealth fund (SWF), Korea Investment Corporation (KIC), is reportedly planning to select a roster of local asset managers and securities brokerages as general partners responsible for the operation of its overseas alternative investments.
This will be the first time KIC has outsourced its offshore alternative mandates to domestic financial entities. Local media reported that KIC had held a meeting with the nation’s major asset managers and securities brokerages in Seoul on May 11 to select general partners, which will be responsible for its overseas infrastructure mandates worth US$2 billion………………………………………..Full Article: Source

1MDB cash linked to property deals

Posted on 13 May 2016 by VRS  |  Email |Print

At least $US50 million allegedly diverted from a state investment fund in Malaysia was spent on luxury properties in New York and Los Angeles by the stepson of the Malaysian prime minister, according to documents reviewed by The Wall Street Journal and people familiar with the matter.
Riza Aziz, a film producer and stepson of Malaysian leader Najib Razak, used money that originated from the 1Malaysia Development Bhd fund to acquire a 7,700-square-foot, $US33.5 million duplex in the Park Laurel condominium tower overlooking New York’s Central Park, the documents and people said………………………………………..Full Article: Source

Top SWF alternatives allocator questions hedge funds’ nous

Posted on 13 May 2016 by VRS  |  Email |Print

A top allocator to alternative investments at the $750 billion China Investment Corporation, one of the world’s largest state investment funds, is unsure most hedge fund managers are as smart as they think they are.
Roslyn Zhang, a managing director in the department of fixed income and absolute return investments at CIC, told attendees at the 2016 SALT Conference in Las Vegas that she was becoming increasingly “disappointed about quite a few aspects of the industry”………………………………………..Full Article: Source

Hedge Fund Crowd Acts Like Chinese Retail Traders, CIC Says

Posted on 12 May 2016 by VRS  |  Email |Print

China Investment Corp.’s Roslyn Zhang, a managing director at the nation’s sovereign wealth fund, criticized hedge fund managers for everything from herding into bets against the yuan to lacking skills to make money.
“Over the last couple years I’m kind of disappointed by the performance,” she said Wednesday at the SkyBridge Alternatives Conference in Las Vegas. Zhang, who oversees fixed-income and absolute-return investments, said CIC is a “sizable” investor in the industry………………………………………..Full Article: Source

New Zealand SWF Axes Eight Private Equity Funds

Posted on 12 May 2016 by VRS  |  Email |Print

The New Zealand Superannuation Fund has cut most of its ties with non-specialist private equity funds based outside the country. Sales of eight fund stakes closed in the last three weeks, according to the NZ$30 billion ($20 billion) sovereign wealth investor.
“These were relatively small investments,” said Fiona Mackenzie, NZ Super’s head of investments, in statement released Tuesday. “The move to sell them is consistent with our strategy to have fewer, deeper relationships with our investment managers.”……………………………………….Full Article: Source

Partners Group acquires several real estate positions from NZ Superannuation Fund

Posted on 12 May 2016 by VRS  |  Email |Print

Partners Group AG, a Switzerland-based private markets management firm, has purchased a number of real estate fund positions from New Zealand Superannuation Fund, a sovereign wealth fund. The purchase of the stake was at a discount.
Partners Group has acquired five fund positions, as the NZ sovereign fund is looking to exit the real estate investment sector. These positions are in the fund of Hong Kong-based Gaw Capital Partners; Red Fort India Real Estate Fund II managed by Singapore-based Rising Straits Capital; and a private equity real estate firm. Statistics show the NZ Super manages assets worth about $21 billion………………………………………..Full Article: Source

New Zealand Super exits real estate funds as it culls external managers

Posted on 11 May 2016 by VRS  |  Email |Print

The New Zealand Superannuation Fund (NZ Super) has announced the sale of its stake in five offshore private equity real estate funds to Partners Group for an undisclosed price.
Partners Group acquired units in funds managed by Orion Capital Managers, Rising Straits Capital, Clearbell and Gaw Capital, according to official information. The sale is part of NZ Super’s ongoing efforts to reduce its roster of external managers. Last month, it sold three offshare private equity funds to an undisclosed buyer………………………………………..Full Article: Source

Preqin says SWFs are adopting ‘safer’ real estate strategies

Posted on 06 May 2016 by VRS  |  Email |Print

According to the latest data from Preqin, core real estate is most targeted strategy, while distressed opportunities see large decline In its latest review, Preqin finds that sovereign wealth funds investing in real estate in 2016 have moved away from higher risk investment strategies, and are increasingly targeting strategies with a lower risk profile.
Core real estate is now the most utilised strategy, employed by 72% of sovereign wealth funds, up from 57% in 2015. Similarly, core plus investments are now sought by 44% of sovereign wealth funds, up from 39% a year ago, says the data provider. Some 85% of sovereign wealth funds seek direct investment in real estate, the most attractive route to market………………………………………..Full Article: Source

Qatar Said in Talks for St. Regis NYC, San Francisco Hotels

Posted on 05 May 2016 by VRS  |  Email |Print

The Qatar Investment Authority is in advanced talks to buy the luxury St. Regis hotels in New York and San Francisco from Starwood Hotels & Resorts Worldwide Inc., according to people with knowledge of the discussions.
The properties may be worth as much as $1 billion, though they could sell for less, said the people, who asked not to be identified because the talks are private. The St. Regis New York, a Beaux Arts landmark on 55th Street off Fifth Avenue, has 238 rooms. The California property, across the street from the San Francisco Museum of Modern Art, has 260 rooms………………………………………..Full Article: Source

Norway’s wealth fund cautious on property deals

Posted on 29 April 2016 by VRS  |  Email |Print

Norway’s sovereign wealth fund sees signs of declining prices in prime real estate markets around the world but not yet enough to trigger a buying spree, the fund’s head of real estate investments told Reuters.
The fund is seeking to step up its investments to 5 percent of the fund’s total value over time, from 3.1 percent currently. Since 2010 it has invested in Regent Street in London, Times Square in New York and the Champs-Elysees in Paris………………………………………..Full Article: Source

Norway’s Wealth Fund Doubles Money on Central London Properties

Posted on 29 April 2016 by VRS  |  Email |Print

Norway’s $870 billion sovereign-wealth fund said the value of its first real estate investments, stakes in London’s Regent Street and a cluster of offices, shops and apartments nearby, more than doubled in value since they were purchased in 2011 and 2013.
The fund’s 25 percent holding in the Crown Estate partnership, which owns parts of the luxury shopping street and the Quadrant 3 development, is valued at 15.8 billion kroner ($1.9 billion), the world’s largest wealth fund said in a report……………………………………….Full Article: Source

Sovereign wealth funds move into real estate amid volatile stock markets

Posted on 28 April 2016 by VRS  |  Email |Print

Real estate is now a prime play for sovereign wealth funds (SWFs) as equity markets remain unpredictable, said an analyst Wednesday. The Sovereign Wealth Fund Institute president Michael Maduell said, “They are looking for long-term investments where they can lock up their capital and not have to continually reinvest that capital.”
The institute analyzes investments by public asset owners such as SWFs and other long-term governmental investors. Vehicles such as pension funds and endowments are also increasing investing in real estate and infrastructure, he told CNBC’s “Squawk Box” on Wednesday………………………………………..Full Article: Source

Norway’s oil fund says sold stake in Spanish properties

Posted on 22 April 2016 by VRS  |  Email |Print

The Norwegian oil fund has sold its 50 percent stake in two logistics properties in Spain through its joint venture with Prologis, it said on Thursday. The fund bought the stake in 2013 for 20.6 million euros ($23.27 million) and has now sold it for 25.1 million euros, it added.
“We have received rental income from the properties during the whole period,” Norges Bank Real Estate Management, which manages the oil fund’s property portfolio, said in a statement. The two buildings are located in Zaragoza and Valencia………………………………………..Full Article: Source

Oil-rich sovereign wealth funds love NYC real estate – but are they running out of cash?

Posted on 21 April 2016 by VRS  |  Email |Print

Sovereign wealth funds’ growth slowed over the past year amid falling oil and commodity prices. The trend could impact New York’s commercial real estate market, where funds like Norges Bank and the Abu Dhabi Investment Authority are among the most active investors.
Total assets under management across all sovereign wealth funds grew by around 3 percent, or $200 billion, between March 2015 and March 2016, to $6.51 trillion, according to a new report by research firm Preqin. This marks a considerable slowdown compared to the previous three years, when annual growth averaged around 16 percent………………………………………..Full Article: Source

Abu Dhabi’s SWF inks $229m deal to build Paris skyscraper

Posted on 13 April 2016 by VRS  |  Email |Print

French construction firm Bouygues on Tuesday said it has won a €200 million ($229 million) contract from Abu Dhabi Investment Authority (ADIA), to build a skyscraper in Paris’ largest business district.
The company said in a statement that it has been hired by the sovereign wealth fund to build the Alto Tower at La Défense. The works will be carried out by Bouygues Bâtiment Ilede-France Construction Privée, the statement said………………………………………..Full Article: Source

Singapore’s GIC invests in French office REIT

Posted on 08 April 2016 by VRS  |  Email |Print

GIC has agreed to buy a 25% stake of CeGeREAL, an office-focused real estate investment company based in Paris, marking the latest in a string of recent investments that Singapore’s sovereign wealth fund has made in the global real estate market.
GIC’s share purchase came about due to Northwood Investors, a New York-based real estate investment firm, selling close to half of its shares in CeGeREAL. With the selling price at 35.65 euros per share, GIC is believed to have paid 119 million euros for the 25% stake………………………………………..Full Article: Source

GIC puts Munich’s O2 Tower up for sale

Posted on 08 April 2016 by VRS  |  Email |Print

Singaporean sovereign wealth fund GIC has confirmed that it has put the O2 Tower in Munich - Bavaria’s tallest scheme - on the market. GIC, which bought the building in 2007 from Hines for a price around €300 mln, is understood to have hired broker Jones Lang LaSalle to market the asset, which at 146 metres is Bavaria’s most prominent office building.
JLL declined to comment on the mandate. The building is expected to fetch some €350 mln. Located opposite the Olympic stadium on the Georg-Brauchle-Ring, the asset is situated next to the Olympia shopping mall and offers four seven-story campus-style buildings next to the office tower………………………………………..Full Article: Source

Norway Frees Wealth Fund to Add $17 Billion in Real Estate

Posted on 07 April 2016 by VRS  |  Email |Print

Norway proposed letting its sovereign wealth fund raise real estate holdings by about $17 billion, while rejecting a call to expand into infrastructure projects. The upper limit on real estate investments for the $850 billion fund, the world’s biggest, should be raised to 7 percent from 5 percent, the Finance Ministry said on Tuesday.
The real estate assets will also be separated from the overall portfolio and “be included in the existing framework for deviations,” according to the ministry. But the government warned the fund to avoid getting close to the ceiling. “Norges Bank must aim for a lower proportion of unlisted real estate than 7 percent to avoid breaching the limit and having to liquidate holdings in the event of sharp, sudden drops in the value of the fund’s listed investments,” the ministry said………………………………………..Full Article: Source

GIC buys 25% of French property management firm CeGeREAL

Posted on 07 April 2016 by VRS  |  Email |Print

An affiLiate of Singapore’s sovereign wealth fund GIC has inked an agreement to buy a 25 per cent stake in CeGeREAL, a French property management firm, at 35.65 euros per share. The purchase from Northwood Investors values CeGeREAL at 476.73 million euros (S$732.7 million), based on the total number of shares at the end of 2015, GIC announcd on Thursday (April 7).
After the completion of the transaction, Northwood’s entities will hold in concert 57.48 per cent of CeGeREAL.The privately-held global real estate investment and management firm has about US$9 billion in total assets under management………………………………………..Full Article: Source

Norway Frees Wealth Fund to Add $17 Billion in Real Estate

Posted on 06 April 2016 by VRS  |  Email |Print

Norway proposed letting its sovereign wealth fund raise real estate holdings by about $17 billion, while rejecting a call to expand into infrastructure projects. The upper limit on real estate investments for the $850 billion fund, the world’s biggest, should be raised to 7 percent from 5 percent, the Finance Ministry said on Tuesday.
The real estate assets will also be separated from the overall portfolio and “be included in the existing framework for deviations,” according to the ministry. But the government warned the fund to avoid getting close to the ceiling………………………………………..Full Article: Source

Qatari Diar unveils plans to turn US embassy in Mayfair into luxury hotel

Posted on 05 April 2016 by VRS  |  Email |Print

The Qatari owners of the US Embassy in London’s Grosvenor Square have unveiled plans to turn the Grade II-listed landmark into a five star hotel as the US government prepares for its move to Nine Elms next year.
Qatari Diar, a subsidiary of sovereign wealth fund the Qatar Investment Authority, will launch a public exhibition next Monday before submitting plans to Westminster City Council in May. The proposals include a 137-room hotel with five restaurants, six flagship retail units, a spa – and a ballroom for 1,000 guests………………………………………..Full Article: Source

Brigade, GIC buy Kansai Nerolac land

Posted on 31 March 2016 by VRS  |  Email |Print

Bengaluru-based property developer Brigade Group and Singapore’s sovereign wealth fund GIC have jointly acquired a 16-acre property in Chennai’s Perungudi area from Kansai Nerolac Paints for R537.86 crore. The acquisition was done through Perungudi Real Estates, a special purpose vehicle formed by Brigade Enterprises with GIC.
Brigade’s two existing joint venture projects with GIC are the development of an IT special economic zone of over 3 million sq ft in Brookefields, Bengaluru and Brigade Cosmopolis, a high-end residential project in Whitefield, Bengaluru………………………………………..Full Article: Source

Real estate investments leave “legacy” for London

Posted on 29 March 2016 by VRS  |  Email |Print

Qatar’s notable ventures into the London property market are not only transforming the city’s skyline, but creating developments intended to nurture the growth of local communities and provide long-term sustainable economic opportunities. Last year, the country’s sovereign wealth fund, the Qatar Investment Authority (QIA), purchased the well-known business district in Tower Hamlets for a cool £2.6 billion.
It was a move that landed Qatar its first City property, the so-called ‘Walkie Talkie’ building, and placed a cherry on top of a spending spree that began back in 2008………………………………………..Full Article: Source

Norway’s oil fund increases bet on property markets

Posted on 29 March 2016 by VRS  |  Email |Print

Norwegian sovereign wealth fund aims to invest $41.5bn in global real estate. Norway’s $830bn oil fund plans to double the size of its property team as the world’s largest sovereign wealth fund seeks to improve performance after posting its worst annual return since 2011.
The oil fund has set itself a target of investing $41.5bn in global property markets. If met, the fund would pour another $16bn into real estate this year. To meet that target, the fund plans to increase the number of staff in its property operation from 104 to 200 by 2017, according to its latest annual report………………………………………..Full Article: Source

Singapore’s GIC buys 50% stake in Mumbai mall for $150m

Posted on 21 March 2016 by VRS  |  Email |Print

Singapore’s sovereign fund GIC has acquired 50 per cent stake in Viviana Mall in Thane, near Mumbai for over Rs 1,000 crore (around $150 million), according to a Business Standard report quoting sources. While the deal is done, GIC is yet to make the payment. Both GIC and Sheth Corp have been in talks for the past six months and recently agreed on the valuation, according to the source.
“GIC is expected to hold the property and not go for a REIT (Real Estate Investment Trust) as they have perpetual capital. Investors such as Blackstone have third-party funds which need to find an exit after some time,” said the executive, who did not want to be quoted………………………………………..Full Article: Source

Temasek displaces GIC as SG’s largest property owner

Posted on 17 March 2016 by VRS  |  Email |Print

Temasek Holdings has emerged as the firm with the largest property holdings in Singapore, with total assets under management (AUM) valued at $39.9 billion, according to the latest Estates Gazette ranking.
In a report by Global Real Estate Insight, other Singapore-based firms in the ranking were CapitaLand ($33.3 billion), GIC ($22.4 billion), Global Logistics Properties ($16.7 billion) and City Developments Limited ($14.9 billion), all of whom were among the global Top 100 property investors by AUM size for 2016………………………………………..Full Article: Source

Temasek overtakes GIC as Singapore’s biggest property firm

Posted on 16 March 2016 by VRS  |  Email |Print

Temasek Holdings has been named the biggest real estate firm in Singapore, with total assets under management at US$39.9 billion, according to the latest Estates Gazette ranking, which pulled together the world’s top 100 investors.
The state-linked investment firm overtook the sovereign wealth fund GIC, last year’s top performer, for the number one spot. Temasek has stakes in major local and regional players such as CapitaLand, M+S, Mapletree and Pulau Indah Ventures………………………………………..Full Article: Source

Hines-ADIA, Conscient to invest Rs 400 crore in residential space in Gurgaon

Posted on 16 March 2016 by VRS  |  Email |Print

The $250-million equity investment platform of international developer Hines and Abu Dhabi Investment Authority (ADIA) has closed its first investment in the residential space in Gurgaon.
In a unique deal, the investment platform is backing developer Conscient and the two have partnered with another private equity fund IREO to build a residential project on around 10 acre of land in Gurgaon, said three people aware of the development………………………………………..Full Article: Source

Adia in deal to buy stake in Brazilian property group

Posted on 11 March 2016 by VRS  |  Email |Print

GP Investments, Latin America’s largest private equity firm, has reached a deal with a subsidiary of Abu Dhabi’s sovereign fund to secure funding for the purchase of about 70 per cent of Brazilian real estate company BR Properties.
GP said in a securities filing on Thursday that THB JV, an indirect subsidiary of the Abu Dhabi Investment Authority (ADIA), has signed a binding subscription agreement with GP Investments unit GPIC as part of the offer to buy a controlling stake in BR Properties, in which Brazilian bank BTG Patcual is a leading shareholder………………………………………..Full Article: Source

QIA joint venture secures office portfolio in US

Posted on 11 March 2016 by VRS  |  Email |Print

Qatar Investment Authority (QIA), in a joint venture with Douglas Emmett, has acquired a major 1.72 million sq ft office portfolio in the US. With four Class ‘A’ office buildings located in Westwood, the premises is located in a premier West Los Angeles submarket.
The purchase price was approximately $1.34 billion, or $777 per sq ft, said a statement from Douglas Emmett. In the deal, the US real estate group will retain 20 to 30% of the equity in the joint venture, with the remaining interests being held by institutional partners………………………………………..Full Article: Source

$6 billion real estate bet eases pain for giant oil fund

Posted on 10 March 2016 by VRS  |  Email |Print

Size, it seems, is no guarantee of success in today’s volatile markets. The world’s biggest sovereign wealth fund has just reported its worst year of investment returns since 2011.
Norway’s $876 billion oil fund made 2.7% in 2015, half the average it has achieved over the past decade. Real estate was its best play last year, generating 10%. Stocks were next with 3.8% and bonds lagged with 0.3%………………………………………..Full Article: Source

Asset differential provides opportunities for European property investors

Posted on 09 March 2016 by VRS  |  Email |Print

The very low level of European interest rates has been the main driver of recovery in European real estate over the last few years, as income-hungry investors substitute higher yielding prime real estate investments for low-yielding bonds. The European market has also been boosted by the emergence of sovereign wealth funds (SWF) and rising wealth and savings in Asia.
According to Real Capital Analytics, SWFs have invested €45 billion(HK$384 billion) in European real estate over the last five years. Due to their size, SWFs are increasingly dominant in transactions for large assets and in global gateway cities, particularly London. The main source of prime real estate investment is the development of new buildings………………………………………..Full Article: Source

GIC Invests $100M In Two Africa-Focused PE Firms

Posted on 07 March 2016 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC has invested $100 million in two African-focused private equity players, Actis and RMB Westport, Deal Street Asia reported. This is the first time that GIC, which has investment in the US, Europe and Asia, has invested in Africa.
It’s lack of direct presence on the continent could be one of the reasons why it decided to invest indirectly via Actis and RMB Westport, private equity portal PERE said in an exclusive report………………………………………..Full Article: Source

Qatar Investment Authority heads to LA with new Douglas Emmett joint venture

Posted on 04 March 2016 by VRS  |  Email |Print

Qatar Investment Authority (QIA) has joined hands with Douglas Emmett, a fully integrated real estate investment trust (REIT), to acquire a prime1.72 million sq ft office portfolio in the US. The portfolio consists of four Class “A” office buildings located in Westwood, a premier West Los Angeles submarket.
The purchase price was approximately $1.34 billion, or $777 per sq ft, said a staatement from Douglas Emmett. As per the deal, the US real estate group plans to retain 20 to 30 per cent of the equity in the joint venture, with the remaining interests being held by institutional partners………………………………………..Full Article: Source

Sovereign Wealth Funds Among Major Stories for REITs

Posted on 04 March 2016 by VRS  |  Email |Print

The prospects for REITs in 2016 are encouraging, with sovereign wealth funds continuing to invest aggressively in U.S. markets and the Fed’s policy of incremental interest rate hikes signaling confidence in the U.S. economy as a whole.
Although the precipitous decline in oil prices has created headwinds in Houston, especially for multifamily and office sectors, even here, job growth remains positive. In the meantime, REITs are reconfiguring their portfolios to focus on new uses of space in the industrial and office sectors in response to new business models and advances in technology………………………………………..Full Article: Source

Qatar Investment Authority inks $1.34bn deal to buy Los Angeles offices

Posted on 03 March 2016 by VRS  |  Email |Print

Qatar’s sovereign wealth fund has signed off a $1.34 billion deal to buy four office buildings in Los Angeles. The Qatar Investment Authority (QIA) bought the 1,725,000 square foot property portfolio along with a joint venture partner, local real estate investment trust (REIT) Douglas Emmett.
The four ‘class A’ buildings are in Westwood, a West Los Angeles district that borders Beverly Hills. Last year, the QIA said it planned to invest $35 billion in North America over the next five years as part of plans to diversify its portfolio………………………………………..Full Article: Source

NYC’s global real estate giants

Posted on 02 March 2016 by VRS  |  Email |Print

Abu Dhabi’s investment in New York mostly runs through its sovereign wealth fund. Foreign investors spent $1.16 billion here last year. But early last month, Reuters reported that the Abu Dhabi fund may transfer billions from its sovereign wealth fund into the government treasury.
Norway’s $830 billion sovereign wealth fund accounts for virtually all the country’s investment in New York real estate. Last year, it spent $1.95 billion here, including $1.56 billion on a 44 percent stake of Trinity Real Estate’s Hudson Square portfolio………………………………………..Full Article: Source

Abu Dhabi SWF to build office tower in Paris – report

Posted on 26 February 2016 by VRS  |  Email |Print

Unit of world’s second-largest sovereign wealth fund awards contract for 38-storey tower in La Defense. The Abu Dhabi Investment Authority (ADIA) is planning to build an office tower in Paris’ largest business district, according to Bloomberg.
The newswire reported that a unit of the Abu Dhabi sovereign wealth fund had bought a plot from a fund managed by UBS to build a 38-storey tower in La Defense. Bloomberg quoted LaSalle Investment, which advised ADIA on the purchase, as saying that a unit from Bouygues Construction had been awarded a $220 million contract to build the tower………………………………………..Full Article: Source

Private Equity Helps SWF Alaska Permanent Fight Oil Slump

Posted on 25 February 2016 by VRS  |  Email |Print

Alaska Permanent Fund Corp. is coping better than many other investors with the market volatility that started this past summer. The Alaska Permanent Fund, the sovereign wealth fund managed by APFC, began its 2015-’16 fiscal year down 4.4 percent for the quarter ended September 30, but rebounded, posting a 2.1 percent return for the three months ended December 31.
Although APFC missed its own benchmark for the quarter, that performance is notable, given how heavily Alaska relies on oil and that there is a slumping commodities market. Before the latest drawdown, the fund managed to take profits by selling stocks and continuing to reduce its dependency on commodities………………………………………..Full Article: Source

KIC’s alternative investments portfolio too small: report

Posted on 23 February 2016 by VRS  |  Email |Print

The proportion of alternative investments allocated by South Korea’s sovereign fund remains far lower than other state-controlled investment vehicles overseas, a report said Monday, raising concerns that it may have missed opportunities to generate higher returns.
According to Korea Economic Research Institute, Korea Investment Corp. has invested only 8 percent of its funds in real estate, private equity and infrastructure in 2014, significantly lower than other sovereign funds including China Investment Corp. which allocated 37.7 percent in the nontraditional sectors in the same year. Singapore’s GIC Pvt. Ltd. also managed 16 percent of its national wealth fund in alternative investments………………………………………..Full Article: Source

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

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