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

Posted on 18 December 2015 by VRS  |  Email |Print

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

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

Posted on 18 December 2015 by VRS  |  Email |Print

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

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

Posted on 16 December 2015 by VRS  |  Email |Print

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

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

Posted on 16 December 2015 by VRS  |  Email |Print

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

Oman’s sovereign wealth fund swoops on Hilton hotel portfolio

Posted on 11 December 2015 by VRS  |  Email |Print

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

How Norway’s SWF Plans to Benchmark Real Assets

Posted on 10 December 2015 by VRS  |  Email |Print

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

World’s Biggest Wealth Fund Given Property Push

Posted on 09 December 2015 by VRS  |  Email |Print

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

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

Posted on 08 December 2015 by VRS  |  Email |Print

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

1MDB close to deal on KL township sale

Posted on 07 December 2015 by VRS  |  Email |Print

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

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

Posted on 04 December 2015 by VRS  |  Email |Print

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

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

Posted on 03 December 2015 by VRS  |  Email |Print

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

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

Posted on 02 December 2015 by VRS  |  Email |Print

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

Norway SWF Pact with Trinity Real Estate

Posted on 02 December 2015 by VRS  |  Email |Print

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

GIC looking to buy more real estate assets

Posted on 27 November 2015 by VRS  |  Email |Print

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

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

Posted on 26 November 2015 by VRS  |  Email |Print

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

GIC looking to buy more real estate assets

Posted on 26 November 2015 by VRS  |  Email |Print

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

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

Posted on 26 November 2015 by VRS  |  Email |Print

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

Singapore’s sovereign fund GIC likes properties here

Posted on 26 November 2015 by VRS  |  Email |Print

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

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

Posted on 26 November 2015 by VRS  |  Email |Print

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

Qatar Investment Authority eyes Paris and Tokyo

Posted on 24 November 2015 by VRS  |  Email |Print

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

GIC to increase exposure to UK property market, exploring Africa

Posted on 24 November 2015 by VRS  |  Email |Print

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

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

Posted on 24 November 2015 by VRS  |  Email |Print

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

Is IPIC main investor in Yurus Private Equity Fund?

Posted on 18 November 2015 by VRS  |  Email |Print

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

Ascott-QIA global fund acquires two prime properties

Posted on 12 November 2015 by VRS  |  Email |Print

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

Norway SWF Sets Out Case for Real Estate Expansion

Posted on 10 November 2015 by VRS  |  Email |Print

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

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

Posted on 10 November 2015 by VRS  |  Email |Print

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

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

Posted on 09 November 2015 by VRS  |  Email |Print

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

Norway’s $860 bln fund may spend over $4 bln on property in 2015-CEO

Posted on 09 November 2015 by VRS  |  Email |Print

Norway’s $860 billion sovereign wealth fund may invest more than $4 billion in property worldwide this year, breaking the record it set last year, its chief executive said on Friday, as the fund builds up its portfolio of real estate. The fund invests Norway’s revenues from oil and gas production in stocks, bonds and property. The latter - mostly commercial real estate - represented 3 percent of the fund’s total value at the end of the third quarter but will reach 5 percent over time.
Last year, the fund invested a record 36 billion crowns ($4.23 billion) in net real estate purchases, CEO Yngve Slyngstad told a seminar on Friday, and may be on track this year to do more. “This year we are still below our record of 36 billion last year, but there is … potential that we will actually pass it,” he said. The fund has so far invested some 28 billion crowns in property in 2015, he said………………………………………..Full Article: Source

Norway’s sovereign wealth fund could look to add $86 billion in real estate

Posted on 09 November 2015 by VRS  |  Email |Print

The world’s largest sovereign wealth fund says the optimal level of property investments might mean putting another $86 billion into real estate, singling out Asia as a hot spot for growth.
Norway’s $860 billion Government Pension Fund Global, Oslo, whose mandate is set by the government, was in 2010 allowed to invest 5% in the property market and is now studying whether it should add more to its portfolio. It has snapped up properties in New York, Paris, London and Berlin, among other cities, and is targeting Tokyo and Singapore………………………………………..Full Article: Source

China’s CIC sovereign to invest €1bn in Grand Paris project

Posted on 04 November 2015 by VRS  |  Email |Print

Chinese sovereign fund China Investment Corporation is ready to invest €1bn in property and infrastructure developments within the Grand Paris regional renewal project, the office of French President François Hollande said.
“CIC would be ready to commit €1bn to Grand Paris, particularly for property operations and infrastructure,” the presidential office said during a recent visit to China by Hollande. French state financing body CDC (Caisse des Dépôts et Consignations) would co-invest 20%-40% of the sum provided by CIC. Its investment would be made through the CDC International Capital unit which specialises in direct investments in partnership with sovereign funds and international institutions………………………………………..Full Article: Source

Singapore’s Temasek, Canada’s OMERS in £415m London office buy

Posted on 03 November 2015 by VRS  |  Email |Print

Singapore sovereign wealth fund Temasek has teamed up with Canada’s Ontario Municipal Employees Retirement System property arm to buy Time Inc’s UK HQ in London from the publishing group for £415m.
Extending Temaseks’s build-up of London assets which started a year ago, the pair bought the 46,000 sq.m. office on London’s South Bank from the publisher, which has owned and occupied the building since it was completed in 2007. It put the Blue Fin building up for sale after sustaining heavy losses in the first quarter of the year, but will continue to use building as its headquarters through a leaseback agreement for over a third of the space with the new owners………………………………………..Full Article: Source

Starwood attracting Chinese interest

Posted on 30 October 2015 by VRS  |  Email |Print

China’s sovereign wealth fund and two big Chinese companies have expressed interest in Starwood Hotels & Resorts Worldwide, joining other potential suitors from around the world, a source familiar with the matter said.
Starwood Hotels, the owner of St Regis and Sheraton hotel brands, has indicated it is considering a sale, and its highly prized collection of properties has also garnered interest from wealthy Middle Eastern investors and other global firms, the person said………………………………………..Full Article: Source

Qatar to acquire a stake in Brookfield’s Manhattan West project

Posted on 29 October 2015 by VRS  |  Email |Print

Brookfield Property Partners is partnering with the Qatar Investment Authority – the energy-rich nation’s sovereign wealth fund – on Brookfield’s $8.6 billion Manhattan West mixed-use development on the Far West Side. QIA will acquire a 44 percent stake in the five-building project — which includes a 62-story, 844-unit residential tower currently under construction and the 67-story One Manhattan West office building slated for completion in 2019.
The deal, announced Wednesday, is not the first time the two parties have teamed up, according to Bloomberg, with the sovereign wealth fund joining forces with Brookfield earlier this year to acquire London-based firms Canary Wharf Group and Songbird Estates………………………………………..Full Article: Source

China Investment Corporation: $2.45 billion deal to buy stakes in nine Australian office towers

Posted on 26 October 2015 by VRS  |  Email |Print

The China Investment Corporation — a state-owned sovereign wealth fund — earlier this month closed a $2.45 billion deal to buy stakes in nine Australian office towers, seven of which are in Sydney. The Australian-record purchase includes a 50 per cent share of the Telstra building on George St, a 25 per cent share of the Deutsche Bank building on Phillip St and 100 per cent shares of high-rises on Elizabeth and Market streets and in North Sydney.
Helped by the falling Aussie dollar, the deal is the latest in a growing list of recent local Chinese purchases whose values have reached hundreds of millions of dollars and beyond. A report this month by real estate services giant Cushman & Wakefield found that Sydney was the world’s fourth-most popular city for global investors, behind only London, New York and Paris………………………………………..Full Article: Source

GIC co-invests in a 2.5m sq ft office development in Hyderabad

Posted on 22 October 2015 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC announced Thursday (Oct 22) that it has partnered New York-based real estate company Tishman Speyer to co-own an office development project in Hyderabad, India.
The partnership will be in a form of a 50-50 joint venture. Located near the high-growth financial district employment corridor in the capital of southern India’s Telangana state, the total area of the project will be 2.5 million sq ft upon completion. It will house more than 20,000 professionals………………………………………..Full Article: Source

Japanese real estate investment expected to increase

Posted on 22 October 2015 by VRS  |  Email |Print

The city’s real estate market could see increased investment from Japanese institutional investors, with Japan’s Government Pension Investment Fund (GPIF) – the world’s largest pension fund – expected to increase global real estate investment. The GPIF is anticipated to allocated up to 5 percent of its roughly $1.2 trillion in assets into “alternative investments” that would include real estate, according to a report by commercial brokerage CBRE.
That means the pension fund’s total investments in overseas real estate markets alone over the coming years could reach $1.8 billion – equal to total Japanese outbound real estate investment in 2014, CBRE said………………………………………..Full Article: Source

Norway’s fund to seek approval for top property deals, central bank says

Posted on 22 October 2015 by VRS  |  Email |Print

The board of Norway’s central bank is introducing an extra layer of supervision for the country’s sovereign wealth fund, which will need to seek approval for all property deals over $250 million, the bank said on Tuesday. For the first time, the $860 billion wealth fund, the world’s largest, will need approval for some of its most valuable property deals. Property represents 2.7 percent of its total value, which it wants to increase to five percent.
The fund, which invests Norway’s revenues from oil and gas in stocks, bonds and property, will now need approval from a new investment committee for deals over $250 million. Deals worth more than $1 billion will need the approval of the board of the central bank. Until now, the fund’s management, led by Chief Executive Yngve Slyngstad, decided on its own………………………………………..Full Article: Source

Norway’s central bank ensures sovereign wealth fund seeks approval for large property deals

Posted on 22 October 2015 by VRS  |  Email |Print

The board of Norway’s central bank is introducing an extra layer of supervision for the country’s sovereign wealth fund, which will need to seek approval for all property deals over US$250 million, the bank said on Tuesday. For the first time, the US$860 billion wealth fund, the world’s largest, will need approval for some of its most valuable property deals. Property represents 2.7 percent of its total value, which it wants to increase to five percent.
The fund, which invests Norway’s revenues from oil and gas in stocks, bonds and property, will now need to approval from a new investment committee for deals over US$250 million. Deals worth more than US$1 billion will need the approval of the board of the central bank. Until now, the fund’s management, led by chief executive Yngve Slyngstad, decided on its own………………………………………..Full Article: Source

Norway’s fund to seek approval for top property deals, central bank says

Posted on 21 October 2015 by VRS  |  Email |Print

The board of Norway’s central bank is introducing an extra layer of supervision for the country’s sovereign wealth fund, which will need to seek approval for all property deals over $250 million, the bank said on Tuesday. For the first time, the $860 billion wealth fund, the world’s largest, will need approval for some of its most valuable property deals.
Property represents 2.7 percent of its total value, which it wants to increase to five percent. The fund, which invests Norway’s revenues from oil and gas in stocks, bonds and property, will now need to approval from a new investment committee for deals over $250 million. Deals worth more than $1 billion will need the approval of the board of the central bank. Until now, the fund’s management, led by Chief Executive Yngve Slyngstad, decided on its own………………………………………..Full Article: Source

Schwarzman: SWFs build PE exposure, even after oil price collapse

Posted on 21 October 2015 by VRS  |  Email |Print

Sovereign wealth funds are an increasingly important funding source for Blackstone Group, even those that have been hammered by the collapse of oil prices, Chief Executive Officer Steve Schwarzman said during the firm’s third quarter earnings call last week.
There are two types of sovereign funds — those related to oil proceeds, and “all else,” Schwarzman said. Funds reliant on oil proceeds have not been growing, which creates a situation where fund managers have to compete for dwindling resources from those funds, he said. But that doesn’t mean those types of oil-oriented funds are backing away from private equity. “Some of them, interestingly, are significantly increasing their share of alternatives because of its performance characteristics,” Schwarzman said………………………………………..Full Article: Source

GIC provides $139m loan to realty PE Maya Capital for investments in UK

Posted on 20 October 2015 by VRS  |  Email |Print

Singapore’s sovereign wealth fund (SWF) GIC has increased its exposure in the UK property market with the grant of a £90-million ($139.1 million) loan to a private equity firm, Maya Capital. Maya Capital, a pan-European realty investment firm and advisory, said that the GIC loan would help fund acquisitions in areas outside London and the London Orbital Motorway (M25) which have seen a resurgence in activity on the back of better economic conditions and employment.
According to a report in UK business publication City A.M., Maya Capital’s ‘regional strategy plan’ is already backed by independent financial firm GWM Capital Advisors, with the firm completing several other transactions in townships surrounding London. According to Maya Capital and GWM, the capital commitment for this initiative is £50 million (US$77.3 million)………………………………………..Full Article: Source

Norway oil fund turning its eyes to Tokyo real estate

Posted on 19 October 2015 by VRS  |  Email |Print

Norway’s Government Pension Fund Global will soon start investing in Japanese office buildings, possibly spending $5 billion to $8 billion over the long term, according to the chief real estate investment officer at Norges Bank Investment Management. Among Asian cities, the world’s largest sovereign wealth fund has set its sights on Tokyo and Singapore, said Karsten Kallevig. Norges Bank Investment Management, which manages the fund, opened an office here in early October for this purpose.
Growth is expected over the long term thanks to the concentration of global businesses, Kallevig said of the Tokyo market. Investment will be limited to the capital, with no plans to expand to Osaka or Nagoya. With the weakening of the yen, some view Japanese real estate as a bargain for overseas investors. But Kallevig said the soft price trend did not factor into the fund’s decision………………………………………..Full Article: Source

Singaporean wealth fund GIC backs property revival in UK regions

Posted on 16 October 2015 by VRS  |  Email |Print

Singaporean sovereign wealth fund GIC has thrown its weight behind a private equity firm that invests in the UK’s regional property market. Maya Capital said it has secured a £90m loan from GIC to help fund acquisitions in areas outside London and the M25 that have enjoyed a resurgence in activity thanks to the improvement economy and a rise in employment.
Its so-called regional strategy plan is already backed by independent financial firm GWM Capital Advisors, and has completed five deals completed to date including five in Cardiff, Newcastle, and Swansea. It also announced a sixth deal yesterday after buying an office block called Highdown House in Worthing for £6.5m at a net initial yield of 10.25 per cent………………………………………..Full Article: Source

REITs: Are Big Backers Like Sovereign Wealth Funds Good Or Bad?

Posted on 15 October 2015 by VRS  |  Email |Print

Some big REIT deals have included well-heeled financial partners like pensions and sovereign wealth funds. That sounds like a good thing. But maybe it’s just allowing more deals to get done at higher cap rates.
The real estate investment trust, or REIT, sector has had a rough year so far share price wise. That said, operationally things appear to be going well for most REITs. One issue that’s popped up more than once, however, is the high price of acquisitions. And the trend toward partnering up with sovereign wealth funds and pensions could be a part of the problem……………………………………….Full Article: Source

Norway Fund Said to Be Preferred Bidder for Singapore Tower

Posted on 14 October 2015 by VRS  |  Email |Print

A consortium of Norway’s sovereign wealth fund and developer CapitaLand Ltd. was chosen as the preferred bidder for a Singapore tower being sold by BlackRock Inc., in what could become the biggest office deal in the city-state, people with knowledge of the matter said.
The bidding group will start exclusive talks with BlackRock about a purchase of Asia Square Tower 1, and could reach an agreement in the next month, according to the people. It beat ARA Asset Management Ltd., which also submitted a final bid for the building, they said, asking not to be identified as the information is private………………………………………..Full Article: Source

Norway SWF Opens Japan Office in Property Push

Posted on 12 October 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund has opened an office in Tokyo as it continues to expand its real estate portfolio. The three-person office was opened in the Japanese capital yesterday (October 8) by the $850 billion Norway Government Pension Fund—Global. It is the fund’s third office in Asia, after Singapore and Shanghai, China.
Karsten Kallevig, CIO for real estate at Norges Bank Investment Management, which runs the fund, said the fund had selected Tokyo and Singapore as the two main locations for its expansion in Asia. “Tokyo is a market that fits well with the rest of our portfolio,” he added………………………………………..Full Article: Source

Nine office towers sell in mega real estate deal

Posted on 09 October 2015 by VRS  |  Email |Print

A Chinese sovereign wealth fund has purchased nine Australian office towers in what is reported to be the biggest-ever direct real estate transaction in Australia’s history. Firms: Allens (Morgan Stanley Real Estate Investing and Investa Property Group); Clayton Utz (China Investment Corporation). Deal: China Investment Corporation purchased nine office towers from Investa Property Group.
Deal significance: Chinese sovereign wealth fund China Investment Corporation outbid multiple global real estate investors to secure nine premium office towers from Investa Property Group; seven in Sydney, one in Brisbane and one in Melbourne………………………………………..Full Article: Source

Norway sovereign wealth fund to invest in prime Tokyo office property -official

Posted on 09 October 2015 by VRS  |  Email |Print

Norway’s Norges Bank Investment Management, which runs the world’s largest sovereign wealth fund, will target prime Tokyo office buildings as it starts to invest in Japan, the fund’s chief investment officer for real estate said on Thursday.
The fund, built on Norway’s oil and gas revenues with $880 billion in assets, will seek local partners to co-invest in Tokyo, said Karsten Kallevig, speaking in an interview as the fund launched operations in Tokyo. The fund’s operational rules were only recently changed to permit property investments outside Europe………………………………………..Full Article: Source

Norway’s oil fund to invest in real estate in Japan

Posted on 08 October 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund will start investing in Japanese real estate, aiming to secure stable returns over the long term, a move that could bring hundreds of billions of yen to the market. The Government Pension Fund Global, the world’s largest sovereign wealth fund, will soon set up an office in Tokyo. It will search for promising commercial properties, mainly office buildings, and make purchases within a year or two.
The fund began investing in real estate in Europe in 2011. Since then, it has added U.S. office buildings and logistics facilities to its portfolio. It intends to increase the weighting of real estate from 2.7% to 5% by also acquiring properties in Tokyo and Singapore………………………………………..Full Article: Source

Norway’s oil fund looking at Tokyo, Singapore for property investments

Posted on 01 October 2015 by VRS  |  Email |Print

Norway’s US$819 billion (S$1.1 trillion) Government Pension Fund, the world’s biggest sovereign wealth fund, is looking to buy properties in Tokyo and Singapore in the coming months, a key executive said on Wednesday.
The fund, built on revenues from the country’s oil and gas production, has previously bought office blocks, shopping malls and other properties in key cities in Europe and North America, and has a stated ambition of expanding its real estate portfolio to Asia………………………………………..Full Article: Source

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