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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

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

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