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Boston Properties to sell 45pct interest in Times Square Tower to Norges Bank

Posted on 10 September 2013 by VRS  |  Email |Print

Real estate investment trust Boston Properties Inc.agreed Monday to sell a 45 percent ownership interest in its 47-story Times Square Tower to a Norwegian Sovereign Wealth fund in an all-cash deal valued at $684 million. The deal includes 45 percent ground leasehold interest and related tax credits. The property is unencumbered by debt. The deal is expected to close within the next 90 days.
The Norwegian Government Pension Fund Global entered into a joint venture agreement with Boston Properties to buy the ownership interest in an office property in New York. The fund is managed by Norges Bank, which is Norway’s central bank and also manages Norway’s foreign exchange reserves………………………………………..Full Article: Source

The Oil Fund of Azerbaijan to keep on purchasing gold and delivering it to Baku in 2014

Posted on 10 September 2013 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) will keep on purchasing physical gold and delivering it to Baku for storage in 2014.
Shahmar Movsumov, the Executive Director of SOFAZ, informs that in 2014 the Fund will most likely keep on buying the gold in planned volumes (up to 5% of Fund assets). “At the present moment we conduct gold purchasing transactions on a weekly basis”, - Movsumov said………………………………………..Full Article: Source

Norwegian politicians mull private equity investments

Posted on 30 August 2013 by VRS  |  Email |Print

Norwegian politicians are reportedly planning to enable the country’s sovereign wealth fund, the largest of its kind in the world, to invest in infrastructure and private equity, both of which are banned under the current rules.
Representatives from the Conservatives and the Progress Party, both of which are currently in opposition, told Reuters that they are open to considering investing in different asset classes abroad………………………………………..Full Article: Source

State Oil Fund of Azerbaijan acquires about 25 tons of gold

Posted on 29 August 2013 by VRS  |  Email |Print

As of August 26, 2013, the State Oil Fund of Azerbaijan purchased 24 tons 887 kilograms (800,146 ounces) of gold, the Fund told Trend on Wednesday. The fund began purchasing gold from the first quarter of 2012, and as of July 1, 2013 the amount of the purchased gold amounted to 22 tons 399 kilograms (720,146 ounces).
According to the strategy of the State Oil Fund, five percent of the investment portfolio can be directed towards the purchase of gold. According to plans, the State Oil Fund buys gold in lots, and this process will take place over two years………………………………………..Full Article: Source

GIC buying 50pct stake in Broadgate

Posted on 23 August 2013 by VRS  |  Email |Print

GIC Pte, the Singapore sovereign wealth fund, is the buyer of Blackstone Group LP’s stake in London’s Broadgate office complex, according to two people with knowledge of the transaction.
GIC is buying 50 per cent of Broadgate, a cluster of 16 office buildings, shops and restaurants on 12ha in London’s main financial district, according to the people. Bloomberg News reported on August 20 that Blackstone agreed to sell the stake for more than US$2.7 billion (RM8.9 billion)………………………………………..Full Article: Source

Singapore wealth fund in talks to become London City’s new landlord

Posted on 23 August 2013 by VRS  |  Email |Print

The Square Mile’s famous Broadgate Estate looks like it may be changing hands, with the Singapore sovereign wealth fund reportedly closing in on an £1.7bn sale. The 15-building estate right in the heart of the City is home to thousands of financial workers and several big names, including UBS.
The site has been co-run by US private equity giant Blackstone and US property firm British Land since 2009. Blackstone is now looking to sell its share to the Singapore Investment Corporation Private Limited (GIC)……………………………………….Full Article: Source

Singapore sovereign wealth fund GIC in talks to buy Broadgate stake for GBP1.7bln

Posted on 22 August 2013 by VRS  |  Email |Print

Singapore’s sovereign wealth fund, GIC, has emerged as the buyer of Blackstone’s 50 per cent stake in the Broadgate office complex in the Square Mile.
GIC is understood to be in exclusive talks with the American private equity group to buy the half share for £1.7 billion………………………………………..Full Article: Source

GIC to make real estate history in London

Posted on 22 August 2013 by VRS  |  Email |Print

A Singaporean sovereign wealth fund (SWF) is set to make the single largest transaction in UK real estate history with the purchase of half a large business complex in the City of London. The Government Investment Corporation of Singapore (GIC) is to enter into the £1.7 billion deal to take over Blackstone’s 50% stake of London’s Broadgate development.
There had been suspicion that the Norwegian SWF would take the stake, and bolster its UK property portfolio, with several other large pension funds—including investors from North America—showing interest in the deal………………………………………..Full Article: Source

Real estate star performer for Norway’s oil fund

Posted on 13 August 2013 by VRS  |  Email |Print

Real estate was by far the best-performing asset class for the Norwegian Government Pension Fund Global during second quarter, as the NOK4.4trn (€557bn) sovereign fund generated a marginally positive return on all its investments.
The Norwegian oil fund’s property holdings, which accounted for less than 1% of total assets at the end of June, returned nearly 3.9%, outperforming both equities (0.9%) and bonds (-1.4%)………………………………………..Full Article: Source

Korea state fund to spend up to $10 bln on alternatives

Posted on 09 August 2013 by VRS  |  Email |Print

Korea Investment Corp., the nation’s sovereign wealth fund, plans to spend as much as $10 billion to triple its allocation to alternative assets, diversifying its portfolio to smooth the fund’s returns.
The sovereign wealth fund, known as KIC, wants to increase holdings of private equity, real estate and hedge funds to as much as 20 percent of its portfolio by 2016 from 6.1 percent at the end of 2012, its chief investment officer said………………………………………..Full Article: Source

Abu Dhabi Investment Council buy into Japan tower

Posted on 09 August 2013 by VRS  |  Email |Print

The Abu Dhabi Investment Council has partnered with two other Japanese investors to buy a billion dollar Tokyo office tower. Market information shows that this is the biggest property deal in Japan since February, and the largest involving a foreign investor since the 2008-2009 global financial meltdown.
The group of investors includes Abu Dhabi Investment Council, Japan’s Secured Capital Investment Management Co. and C V Starr & Co. which is run by former U.S. insurance magnate Greenberg………………………………………..Full Article: Source

Hedge funds and commodities are off the menu for SWFs

Posted on 07 August 2013 by VRS  |  Email |Print

Alternative asset classes are piquing the interest of sovereign wealth funds (SWFs), but asset managers will have to work hard to win any of their money. A report from research specialists Cerulli has found 64% of asset managers believe alternatives will attract the most mandates from SWFs over the next 12 months.
However, they believed SWFs would only be interested in private equity or infrastructure assets. None of the asset managers questioned believed the funds would allocate more to hedge funds, commodities, or any other sort of alternative………………………………………..Full Article: Source

Global PEs, sovereign, pension funds in race for Unitech SEZ

Posted on 05 August 2013 by VRS  |  Email |Print

Real estate investment company Unitech Corporate Parks has shortlisted two global private equity funds, a sovereign wealth fund of Singapore and a Canadian pension fund to make second round of bids for its 3.6 million sq ft IT special economic zone in Gurgaon near Delhi.
A person close to the development said the company has invited London-based Xander, New York-headquartered Blackstone, Singapore’s GIC and the Canadian Pension Fund for the second round of bidding………………………………………..Full Article: Source

Norway’s SWF approved by Euro Commission to buy Paris properties

Posted on 01 August 2013 by VRS  |  Email |Print

Norway’s sovereign wealth fund under their subsidiary NBIM Clement SCI has been approved by the European Commission to acquire 50% of French developer SCI Pasquier. Currently, SCI Pasquier is solely owned by Assicurazioni Generali S.p.A which is part of the Italian insurer Generali Group.
Generali will maintain 50% ownership in the properties. The sovereign wealth fund investment includes five properties in Paris. The real estate transaction would augment NBIM’s exposure to core properties in central Paris………………………………………..Full Article: Source

Foreign investors & SWFs bullish on Indian realty

Posted on 31 July 2013 by VRS  |  Email |Print

Global investors are once again warming up to India’s real estate and have raised nearly $2 billion (Rs 11,854 crore) in the past year despite the economic uncertainties and the scepticism surrounding this sector.
Some of the large investments include Abu Dhabi Investment Authority (ADIA) backing Kotak Realty fund, and Sovereign Fund of Oman investing in HDFC. While realty funds are cautious, they are looking for future opportunities as well. Sovereign wealth fund of Gulf ADIA has invested in the offshore fund of Kotak Realty Funds. ADIA, owned by the Emirate of Abu Dhabi, has also appointed Aditya Bhargava, an India-dedicated investment manager, to look at options to invest in the country………………………………………..Full Article: Source

Alaska Permanent commits $1.75bln to Blackstone, Carlyle

Posted on 31 July 2013 by VRS  |  Email |Print

The Alaska Permanent Fund has made commitments to several private-equity funds run by the Blackstone Group and the Carlyle Group.
The $42 billion fund’s board of trustees committed $1 billion to two Blackstone funds and $750 million Carlyle. Half of the Blackstone commitment will go to the Blackstone Strategic Holdings Fund, and the other half to a no-fee fund that makes co-investments alongside that fund………………………………………..Full Article: Source

RMZ Corp receives investment from QIA fund

Posted on 24 July 2013 by VRS  |  Email |Print

Qatar Investment Authority, a sovereign wealth fund is investing $300 million in RMZ Corp, a Bangalore based commercial space developer. The capital will be invested into RMZ’s SPV in which Baring Private Equity Partners, also had invested R500 Cr in 2012. The investment will be equally split into a combination of equity and debt.
QIA Fund will back RMZ to buy IT parks worth R3,000 Cr and jointly, both partners will look at acquiring commercial spaces across Bangalore, Hyderabad, Chennai and Pune………………………………………..Full Article: Source

Qatar fund QIA to invest $300 mln in realtor RMZ in one of largest investment deals

Posted on 23 July 2013 by VRS  |  Email |Print

In one of the largest investment deals in the Indian real estate sector, sovereign wealth fund Qatar Investment Authority (QIA) is investing $300 million ( Rs 1,800 crore) in Bangalore-based real estate developer and South India’s largest office space builder RMZ Corp, said three people with direct knowledge of the development.
“The deal is in advance stage. QIA has committed to give money, and it will be based on project requirements. The investment will be equally split into a combination of equity and debt,” said the first person………………………………………..Full Article: Source

Realty funds draw leading global investors and SWFs

Posted on 22 July 2013 by VRS  |  Email |Print

The Abu Dhabi Investment Authority (ADIA), a sovereign wealth fund owned by the Emirate of Abu Dhabi, with estimated assets under management of $625 billion, invested $300 million (Rs 1,800 crore) in the offshore fund of Kotak Realty Funds, said a senior real estate executive privy to the development.
He added Canada Pension Plan (CPP), the $183-billion pension fund, has committed investment of $200 million (Rs 1,200 crore) in the $500-million realty fund of Shapoorji Pallonji Investment Advisors, part of the Shapoorji Pallonji group, promoted by billionaire Pallonji Mistry………………………………………..Full Article: Source

Future Fund keeps faith in hedgies

Posted on 16 July 2013 by VRS  |  Email |Print

Despite reducing its exposure to hedge funds, the Australian state investor retains a substantial allocation to the asset class - but is especially keen on equities right now. Allocating one-sixth of a $78 billion portfolio to hedge funds and insurance-related assets is a major commitment, even for an investor as sophisticated as Australia’s sovereign wealth fund.

Admittedly the Sydney-based Future Fund has cut what it calls its alternatives exposure (which comprises only the above two asset types) to 16% as of June from 19% a year earlier………………………………………..Full Article: Source

Abu Dhabi’s ADIA invests $200mln in India real estate

Posted on 15 July 2013 by VRS  |  Email |Print

Abu Dhabi Investment Authority (ADIA) plans to invest about $200 million in Indian real estate, two sources said, underscoring a trend for large Gulf sovereign wealth funds to diversify away from traditional developed markets such as Europe. ADIA, which manages the surpluses the Gulf emirate earns from oil exports, has appointed Kotak Realty Fund, run by Kotak Mahindra Bank Ltd, to invest the money, one of the sources familiar with the matter said.
Earlier this month, Oman’s State General Reserve Fund and the Government of Singapore Investment Corp (GIC) and Temasek committed to invest $200 million in a real estate fund run by India’s biggest mortgage lender, Housing Development Finance Corporation………………………………………..Full Article: Source

Abu Dhabi’s ADIA invests $200 mln in India real estate

Posted on 12 July 2013 by VRS  |  Email |Print

Abu Dhabi Investment Authority (ADIA) plans to invest about $200 million in Indian real estate, two sources said, underscoring a trend for large Gulf sovereign wealth funds to diversify away from traditional developed markets such as Europe.
ADIA, which manages the surpluses the Gulf emirate earns from oil exports, has appointed Kotak Realty Fund, run by Kotak Mahindra Bank Ltd, to invest the money, one of the sources familiar with the matter said. Earlier this month, Oman’s State General Reserve Fund and the Government of Singapore Investment Corp (GIC) and Temasek committed to invest $200 million in a real estate fund run by India’s biggest mortgage lender, Housing Development Finance Corporation………………………………………..Full Article: Source

Super funds look to alternatives to cut costs

Posted on 09 July 2013 by VRS  |  Email |Print

With MySuper regulations pushing superannuation funds to reduce costs, Towers Watson’s latest research has found this has driven parts of the industry to seek more cost-effective investment solutions like alternatives.
Based on a survey of the top 100 alternative asset managers globally over the year to December 2012, Towers Watson found that pension fund assets represent over a third (36 per cent) of total global assets under management for the asset managers surveyed, which reached $3.1 trillion in 2012………………………………………..Full Article: Source

GIC, Temasek, Oman to invest in HDFC property fund

Posted on 03 July 2013 by VRS  |  Email |Print

The Government of Singapore Investment Corp (GIC), investment firm Temasek and Oman’s State General Reserve Fund have committed to invest USD 200 million in a real estate fund run by Indian mortgage lender HDFC , a source with direct knowledge of the matter told Reuters.
The investment is in a USD 500 million real estate private equity fund launched late last year by HDFC Property Fund, founded by Housing Development Finance Corp (HDFC), India’s biggest mortgage lender, the source said, speaking on condition of anonymity as the information is not public………………………………….Full Article: Source

ADIA warns against ‘funding PE exposure’ through real estate

Posted on 03 July 2013 by VRS  |  Email |Print

Low returns in core real estate are tempting investors to move up the risk curve, but they should beware of unwittingly increasing their exposure to “private equity”, according to Abu Dhabi Investment Authority’s (ADIA) head of real estate strategy.
Paul Kennedy, who oversees the real estate exposure of the world’s second largest sovereign wealth fund, told a conference in Cambridge, England, that leveraged and development-led property strategies should be funded by private equity allocations, or they risk “damaging” multi-asset portfolios………………………………….Full Article: Source

NZ Super Fund allocates $40mln through Pioneer Capital

Posted on 01 July 2013 by VRS  |  Email |Print

The New Zealand Superannuation Fund, which invests to fund the country’s universal state pension, will place $40 million in a new $150 million venture capital fund to finance fast-growing small to medium-sized businesses with global potential.
The funds will be placed with Auckland-based Pioneer Capital, which already holds stakes in recently listed software company SLI Systems, boutique brewer Moa beer, and health system software developer Orion Health…………………………………Full Article: Source

Super fund’s private equity plan

Posted on 01 July 2013 by VRS  |  Email |Print

The New Zealand Superannuation Fund is investing in a new private equity fund that will back Kiwi companies looking to go global. Matt Whineray, general manager investments for the superannuation fund, said the fund’s $40 million investment with Pioneer Capital was part of a broader strategy to provide expansion capital to local small-to-medium-sized businesses.
“There is a significant pool of smaller, high-growth companies in New Zealand that can potentially provide attractive investment opportunities to long-term investors such as the fund,” he said. The superannuation fund has about $3.5 billion invested in New Zealand, including more than $1b in the local sharemarket, up from $2.4b in June 2009…………………………………Full Article: Source

Mubadala, Farglory break ground on $1bln plaza

Posted on 28 June 2013 by VRS  |  Email |Print

Mubadala Real Estate & Infrastructure (MREI), a business unit of Mubadala Development Company, and TOP Taiwanese property developer Farglory Group have broken ground on the $1 billion Maryah Plaza, a four-tower luxury waterfront complex in Abu Dhabi.
Located on Al Maryah Island, the four towers of the plaza will be developed in phases and, when complete in 2020, will have a combined GFA (gross floor area) of 153,000 sq m. This marks the first development which has commenced on the Island by a foreign direct investor………………………………………..Full Article: Source

Qataris poised for discounted buy of iconic Barcelona hotel

Posted on 17 June 2013 by VRS  |  Email |Print

Qatar Investment Authority is reportedly within days of signing the acquisition of the flagship Hotel Vela in Barcelona at a significant discount. The Middle-East sovereign wealth fund is reportedly going to pay €200 mln, 23% down on the rumoured €260 mln development cost.
Located on the Barcelona waterfront, the five-star hotel was designed by architect Ricardo Bofill. The hotel is operated by W Hotels, a luxury brand of hotel chain Starwoods, and provides 473 guest rooms including 67 suites……………………………………Full Article: Source

Time to invest in Europe’s private markets, says CIC’s He

Posted on 14 June 2013 by VRS  |  Email |Print

The European debt crisis offers a good opportunity to invest in private markets, said head of private equity at China Investment Corporation Linbo He.He noted that private equity investments performed strongly in 1998-2005 despite a tough fundraising environment.
In contrast, performance deteriorated in 2004-2008 despite much better exit and fundraising opportunities. “I think the current crisis is actually making European countries to think about what they are doing and forcing them to reform,” said He………………………………………..Full Article: Source

Oil-fueled Norwegian SWF buys 2.4 msf industrial portfolio in UK

Posted on 13 June 2013 by VRS  |  Email |Print

LondonMetric Property Plc, a real estate investment trust, has recently completed the sale of its stake in a large distribution portfolio to a joint venture between U.S.-based Prologis’ European branch and Norges Bank Investment Management. The JV purchased the eleven industrial properties that comprise the portfolio for a fee of around $380 million, reflecting a net initial yield of 6.25 percent.
The industrial portfolio totals 2.4 million square feet of space, with 10 of the properties being held by LondonMetric in a 50 percent joint venture with Green Park Investments. The remaining Focus Distribution Centre at Tamworth, was wholly owned by the British REIT. According to a press release, after repayment of debt and fees, LondonMetric made a $105 million profit………………………………………..Full Article: Source

World’s largest sovereign wealth fund buying British

Posted on 11 June 2013 by VRS  |  Email |Print

Norway’s oil fund has purchased a GBP 250m portfolio of suburban warehouses in the U.K. as it moves forward with plans to increase its property assets. The Norwegian Pension Fund Global, the world’s largest sovereign wealth fund, is buying 11 warehouses to be used as distribution centres for retailers such as Tesco, Primark and the Co-op, according to the Financial Times.
The warehouses, which are being bought from LondonMetric - a property group merged between London & Stamford and Metric Property Investments - have a total floor area of 2.4 million square feet………………………………………..Full Article: Source

Norway in three-way fight for London complex share

Posted on 11 June 2013 by VRS  |  Email |Print

Norway’s sovereign wealth fund (SWF) is competing for half of the Broadgate office and London’s main business district. Two other contenders are fighting for the 50% stake, which is being sold off by asset manager Blackstone: Canadian developer Brookfield and Deutsche Bank’s property investment arm Rreef.
According to the FT, if the deal goes ahead, it is expected to net Blackstone a hefty profit on its 2009 investment in the four-mile square foot estate, which was valued at £2.1 billion at the time by its owner British Land………………………………………..Full Article: Source

Middle East SWFs target private equity funds

Posted on 11 June 2013 by VRS  |  Email |Print

A new market survey has revealed that large institutional investors and SWFs in the Middle East are showing a greater appetite for alternative investments, such as private equity and hedge funds. The survey, by asset management arm of French bank Natixis shows that there has been a paradigm shift in the investment pattern of Middle East investors.
Interest in these investments has encouraged some of the world’s largest sovereign wealth funds to set up offices in the Gulf region. About 69 percent of the polled Middle Eastern institutional investors expected to increase fund allocations to alternatives and other assets not related to the global market trends. Sovereign funds, like the Abu Dhabi Investment Authority, prefer to invest in private equity funds as they try to balance short and long-term investment objectives………………………………………..Full Article: Source

Qatar steps in with $7.1bln support for property firm

Posted on 10 June 2013 by VRS  |  Email |Print

Qatar Diar, the real estate arm of the Gulf state’s sovereign wealth fund, owns 45 per cent of Barwa. Qatar stepped in with $7.1 billion of financial support for its ailing property firm Barwa Real Estate on Thursday, buying some key assets to help the company reduce its debt pile.
Qatar Diar, the real estate arm of the Gulf state’s sovereign wealth fund, owns 45 per cent of Barwa, according to Reuters data and is stepping in after Barwa notched up liabilities of about 37 billion riyals ($10.16 billion) at the end of 2012 due to overexpansion. Its profit plunged 46 per cent in the first quarter………………………………………..Full Article: Source

New property wealth resides in warehouses

Posted on 10 June 2013 by VRS  |  Email |Print

The valuation gap between trophy property assets, such as offices and shopping centres in major capitals, and less glamorous out-of-town secondary property is starting to narrow as institutional investors broaden their sights in search of better returns and less overheated prices.
Sovereign wealth funds are contributing to the shift. Last week Norway’s $720bn oil wealth fund, run by Norges Bank Investment Management, snapped up a £250m portfolio of UK suburban warehouses, used as retail distribution centres. “Sovereign wealth funds and pension funds are looking around for something other than prime retail and getting into industrial property assets such as warehouses, which look appealing,” says Philip Marsden, director of European capital markets at Jones Lang LaSalle. ……………………………………….Full Article: Source

Qatar steps in with $7.1 bln support for property firm

Posted on 07 June 2013 by VRS  |  Email |Print

Qatar stepped in with $7.1 billion of financial support for its ailing property firm Barwa Real Estate on Thursday, buying some key assets to help the company reduce its debt pile. Qatar Diar, the real estate arm of the Gulf state’s sovereign wealth fund, owns 45 percent of Barwa, according to Reuters data and is stepping in after Barwa notched up liabilities of about 37 billion riyals ($10.16 billion) at the end of 2012 due to overexpansion. Its profit plunged 46 percent in the first quarter.
“The sale proceeds will be directed towards extinguishing the company’s debts, reducing financing costs and improving the company’s financial position,” Barwa said in a bourse statement on Thursday…………………………………….Full Article: Source

Norway fund buys UK industrial space

Posted on 06 June 2013 by VRS  |  Email |Print

Norway’s oil fund has purchased a £250m portfolio of suburban warehouses in the U.K. as it moves forward with plans to increase its property assets. The Norwegian Pension Fund Global, the world’s largest sovereign wealth fund, has agreed to buy 11 warehouses used as distribution centers for retailers such as Tesco, Primark and the Co-op, according to the Financial Times.
The warehouses were purchased from LondonMetric, a property group merged between London & Stamford and Metric Property Investments. The industrial space has a total floor area of 2.4 million square feet………………………………………..Full Article: Source

LondonMetric sells Warehouses to Norwegian wealth fund venture

Posted on 05 June 2013 by VRS  |  Email |Print

LondonMetric Property Plc (LMP), a real estate investment trust created by a takeover last year, agreed to sell logistics centers in a deal valued at 247.6 million pounds ($379 million) including debt to a company owned by Prologis Inc. (PLD) and Norway’s sovereign-wealth fund.
LondonMetric would receive 68.3 million pounds after repayment of debt and fees for the 11 warehouse properties with 2.4 million square feet (223,000 square meters) of combined space, the London-based company said in a statement today. The deal’s net initial yield is 6.25 percent, it said………………………………………..Full Article: Source

Norway’s oil fund snaps up GBP250mln portfolio of UK warehouses

Posted on 05 June 2013 by VRS  |  Email |Print

The world’s largest sovereign wealth fund has snapped up a £250m portfolio of suburban warehouses in the UK in a deal that highlights big investors’ shift away from “trophy” property assets.
Norges Bank Investment Management, Norway’s $720bn oil wealth fund, confirmed on Tuesday that it had agreed to buy the 11 warehouses, which are used as distribution centres for retailers including Tesco, Primark and the Co-op………………………………………..Full Article: Source

Buzz over Temasek Holdings - Khazanah Nasional condominium

Posted on 05 June 2013 by VRS  |  Email |Print

Buyers are queueing up to get a foot in the door of the first property launch to emerge from the partnership in Iskandar Malaysia between Temasek Holdings and Khazanah Nasional.
All of the 147 units at Afiniti Residences will be launched for sale at a balloting exercise on Saturday morning at the Traders Hotel at Puteri Harbour in Iskandar. About 1,570 people have registered their interest online for the 129-year leasehold condominium, which is next to Legoland in Nusajaya, with more signing up since registration closed last week……………………………………….Full Article: Source

World chasing U.S. yield with 25pct deal jump

Posted on 05 June 2013 by VRS  |  Email |Print

Singaporeans, South Koreans, Israelis and Norwegians are accelerating purchases of U.S. real estate as a growing economy and rebounding prices lure yield-hungry buyers from overseas. International investors made $7.97 billion in U.S. commercial-property purchases this year through April, a 25 percent jump from the same time in 2012, according to Real Capital Analytics Inc.
Blackstone Group LP, the second-biggest U.S. office landlord, has said it expects strong interest from sovereign-wealth funds for properties it plans to sell starting this year.The interest comes from all parts of Asia, Europe and the Middle East. You’ve got some relatively young, very large sovereign-wealth funds that are just starting to actively invest………………………………………..Full Article: Source

SOFAZ aims to invest in real estate in developed markets

Posted on 31 May 2013 by VRS  |  Email |Print

The state oil fund SOFAZ — an entity that accumulates and manages Azerbaijan’s oil and gas revenues — as a long-term investor is seeking stability of its real estate investments and thus aims to invest in assets in developed markets with long-term profitability.
SOFAZ Executive Director Shahmar Movsumov said that currently the Fund is studying the possibility of acquiring commercial property in Asia and Australia. “In particular, SOFAZ representatives have visited Seoul and Shanghai, as well as the major Australian cities Melbourne and Sydney in order to find high-quality commercial real estate,” Movsumov said………………………………………..Full Article: Source

Chinese SWF shifts focus to U.S. real estate; How this will affect home prices

Posted on 31 May 2013 by VRS  |  Email |Print

One of the biggest fears for investors is to buy at the top of any market. This is a natural reaction because most of us were taught since childhood to do the opposite. For example, my parents always emphasized the importance of buying products when they’re on sale.
Some people view the significant rise in home prices with apprehension, believing that these prices have risen too far. While it is true that home prices have risen substantially, as long as interest rates remain low, there is potential for further capital appreciation………………………………………..Full Article: Source

Alaska Permanent Fund to free up $300mln for real estate

Posted on 31 May 2013 by VRS  |  Email |Print

The Alaska Permanent Fund Corporation has earmarked approximately $300m (€233m) to invest real estate after it increased the maximum leverage allowed in its real estate portfolio from 25% to 35% and adding a 50% leverage maximum on any one property.
Mike Burns, executive director for Alaska, said: “We have seen how low the current interest rates are now, and we wanted to take advantage of this situation………………………………………..Full Article: Source

Chinese sovereign fund shifts focus to U.S. real estate

Posted on 30 May 2013 by VRS  |  Email |Print

Americans aren’t the only ones considering real estate as part of their investment strategy. Recent reports state that China is considering diversifying its foreign exchange reserves, totaling approximately US$3.4 trillion, into U.S. real estate. With the Chinese investment strategy in the past based primarily on investing in U.S. government debt, considering how little this asset class is currently yielding, it does make sense for the Chinese to look at diversifying into other sectors.
When looking at the potential for home prices to continue rising versus U.S. government debt, this diversification seems quite prudent. The ramifications for American home prices could be substantial. It really depends on how China goes about allocating its investment strategy. There are already shortages in many real estate markets across the U.S., which is part of the reason home prices have moved up so quickly………………………………………..Full Article: Source

China’s SAFE eyes American real estate, reports say

Posted on 29 May 2013 by VRS  |  Email |Print

China’s official overseer of foreign-currency reserves is considering real estate and other investments in the United States. Bloomberg News on Monday cited two people with direct knowledge of the situation as saying that the State Administration of Foreign Exchange, or SAFE, began studying the possibility of investing in US real estate after noting signs of a recovery in the country’s property market.
China may acquire real estate, invest in real estate funds or buy stakes in property companies, according to Bloomberg’s sources, who requested anonymity because they weren’t authorized to speak publicly about the matter. The safety of the investments will be SAFE’s top priority, the sources said………………………………………..Full Article: Source

Gulf wealth funds raising private equity investments: Study

Posted on 21 May 2013 by VRS  |  Email |Print

Sovereign wealth funds in the Gulf Arab region are raising their allocations to private equity investments at a faster rate than other types of investment, US fund manager Invesco says in a new study.
“Contrary to popular perceptions these vast state funds are not piling into global property and global infrastructure projects,” Nick Tolchard, head of Invesco Middle East said. “As well as a rise in co-investment deals, over and above private equity funds we are seeing an emergence of direct private equity investments coming out of SWFs.”………………………………..Full Article: Source

SOFAZ says still interested in real estate abroad

Posted on 21 May 2013 by VRS  |  Email |Print

The state oil fund SOFAZ — an entity that accumulates and manages Azerbaijan’s oil and gas revenues — has announced that it is still interested in property acquisitions in prime business districts of major cities around the world.
The company said that under short-term plans it plans to purchase commercial real estate in Asia. “SOFAZ has its own strategy on the purchase of real estate and related requirements. If the commercial property meets the strategy and all requirements of the fund, then SOFAZ is ready to purchase it,” the fund told Trend news agency…………………………………Full Article: Source

Real estate overtakes commodities as top sovereign fund asset

Posted on 17 May 2013 by VRS  |  Email |Print

Real estate topped the list of sovereign wealth funds’ investments last year, overtaking commodities and financial services, according to Institutional Investor’s Sovereign Wealth Center.
Properties made up 26 percent of investments by these funds last year, up from 14 percent in 2011, according to the center’s report on investment trends by the funds released today. That’s followed by financial services and commodities, each accounting for 23 percent, down from about 30 percent a year earlier, it said………………………………………..Full Article: Source

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