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Sovereign Wealth Funds Briefing - Category | Alternative Investments more

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

Azerbaijan’s state oil fund buys landmark retail property in Tokyo

Posted on 30 September 2015 by VRS  |  Email |Print

Azerbaijan’s state oil fund Sofaz has made its first real estate investment in Japan, buying retail property Kirarito Ginza in Tokyo for 52.3 billion yen with Mitsubishi UFJ Trust and Banking Corp, it said on Wednesday. The fund said it bought the property from Elliott Advisors Asia and Orix Corp.
The US$37 billion Sofaz sovereign wealth oil fund holds proceeds from oil contracts, oil and gas sales, transit fees and other revenue. It uses income from investments to pay for social spending and infrastructure projects. “We are delighted to have made our first foray into the Japanese real estate market. Our investment rationale for this asset is based on its capital preservation capacity,” said Shahmar Movsumov, the fund’s executive director, adding it saw potential to enhance the property’s return over the medium to long term………………………………………..Full Article: Source

Qatar Wealth Fund Backs Apollo Commercial REIT in U.S. Expansion

Posted on 30 September 2015 by VRS  |  Email |Print

Qatar’s sovereign wealth fund, which plans to invest $35 billion in the U.S. in the next five years, is backing a commercial real estate investment trust run by a subsidiary of Leon Black’s Apollo Global Management LLC.
The Qatar Investment Authority bought 8.82 million common shares of Apollo Commercial Real Estate Finance Inc. on Sept. 18, according to documents filed on Monday with the U.S. Securities and Exchange Commission. The REIT announced on Sept. 21 that it sold these shares at $17 each for a total of $150 million, and that it raised another $198 million from the same unidentified investor through preferred stock sales………………………………………..Full Article: Source

Kuwait Investment Authority eyes $2bn Irish mall

Posted on 30 September 2015 by VRS  |  Email |Print

Kuwait Investment Authority (KIA) is among the final three bidders for an Irish property portfolio valued at an estimated $1.8bn. Project Jewel, a loan portfolio that includes debt secured on Dundrum Town Centre, a 12 ha shopping centre in Dublin, among others, is controlled by Ireland’s National Asset Management Agency (NAMA), the government body that took over the country’s distressed real estate assets during the downturn.
The final bidders for the portfolio have all come from overseas, with KIA lodging a joint bid with US investor Hines. The two other bids have come from US firm Colony Capital and a joint bid by Germany’s Allianz Real Estate and UK property investment giant Hammerson, according to the Irish Independent newspaper………………………………………..Full Article: Source

Norwegian Oil Fund Acquires Shopping Centre in London

Posted on 28 September 2015 by VRS  |  Email |Print

Norges Bank Investment Management (Norwegian Oil Fund) has acquired a 100 percent interest in the West One Shopping Centre and 75 Davies Street, a 90,000 square foot retail and office property located above Bond Street Underground station in London. The agreement was signed and completed 18 September 2015.
Norges Bank Investment Management paid 240 million pounds for the entities that own the 95-year long leasehold interest in the property. The asset is unencumbered by debt, and no financing was involved in the transaction………………………………………..Full Article: Source

Azerbaijan State Oil Fund makes prime acquisition in Ginza, Tokyo

Posted on 25 September 2015 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) and Mitsubishi UFJ Trust and Banking Corporation have jointly acquired landmark retail property Kirarito Ginza in Tokyo, Japan for JPY 52.3 billion. This is Sofaz’s first real estate investment in Japan. The property was purchased from Elliott Advisors Asia Limited and Orix Corporation.
Kirarito Ginza is located in Chou Avenue, Ginza, which is the most prestigious retail location in Japan. The property was built in 2014 and is one of the very few trophy assets recently completed in Ginza area. The gross floor area (GFA) of the property is approximately 15,647 m2. The asset is let to 47 tenants………………………………………..Full Article: Source

Azerbaijan’s SOFAZ makes first real estate investment in Japan

Posted on 24 September 2015 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) and Mitsubishi UFJ Trust and Banking Corporation have jointly acquired landmark retail property Kirarito Ginza in Tokyo, Japan for 52.3 billion Japanese yen (nearly $444.24 million), SOFAZ said in a message Sept. 23. This is SOFAZ’s first real estate investment in Japan. The property was purchased from Elliott Advisors Asia Limited and Orix Corporation.
“Kirarito Ginza is located in Chou Avenue, Ginza, which is the most prestigious retail location in Japan. The property was built in 2014 and is one of the very few trophy assets recently completed in Ginza area,” said the SOFAZ message. The gross floor area (GFA) of the property is approximately 15,647 square meters and the asset is let to 47 tenants………………………………………..Full Article: Source

Ardian set to acquire S$1.4b of private-equity fund stakes from GIC

Posted on 21 September 2015 by VRS  |  Email |Print

Ardian, the French alternative asset manager, agreed to buy a portfolio of private-equity fund stakes worth about US$1 billion (S$1.4 billion) from Singapore sovereign wealth fund GIC, people with knowledge of the matter said.
The private-equity firm made a preemptive offer to GIC at a premium to book value to avoid an auction, said the people, who asked not to be identified because the information is private. Paris-based Ardian and GIC both declined to comment………………………………………..Full Article: Source

Ardian Said to Buy $1 Billion of GIC Private-Equity Fund Stakes

Posted on 18 September 2015 by VRS  |  Email |Print

Ardian, the French alternative asset manager, agreed to buy a portfolio of private-equity fund stakes worth about $1 billion from Singapore sovereign wealth fund GIC Pte, people with knowledge of the matter said. The private-equity firm made a preemptive offer to GIC at a premium to book value to avoid an auction, said the people, who asked not to be identified because the information is private.
A spokeswoman for Paris-based Ardian declined to comment, while a spokeswoman for GIC didn’t respond to e-mail requests for comment. The agreement with GIC comes just weeks after a deal to buy a $1.5 billion portfolio of fund stakes from the Abu Dhabi Investment Council, a government-controlled fund manager, collapsed following valuation concerns………………………………………..Full Article: Source

What Does ARA Asset Management Limited’s Latest Fund Mean for the Company?

Posted on 16 September 2015 by VRS  |  Email |Print

ARA Asset Management Limited, a manager of real estate investment trusts and real estate funds, announced yesterday that it had just raised US$325 million in capital commitments for its private real estate funds division. The company had managed to raise the capital through a new platform which has a “premier Asian-based sovereign wealth fund [SWF]” as its anchor investor.
What might the success of the fund-raising activity showcase about ARA Asset Management’s business? ARA Asset Management’s latest platform is designed to be a closed-end fund with an initial term of 10 years which may be extended. The fund will be investing in properties across Asia, including territories like China, Hong Kong, Singapore, Japan, and even Australia………………………………………..Full Article: Source

Cromwell, Charter Hall circle IOF

Posted on 15 September 2015 by VRS  |  Email |Print

Cromwell Property and Charter Hall are circling the $2.3 billion Investa Office Fund in a move likely to result in the dismemberment of the listed trust’s parent, the Morgan Stanley-backed Investa Property Group. A vote towards a full buyout of the management rights remains the likely option. Such a deal would also deliver control over a $2.45bn portfolio of assets Morgan Stanley recently sold to China’s sovereign wealth fund CIC.
While Cromwell continues to size up its options on IOF, it is understood the group is also considering another tilt for the entire platform. The group waded into the Investa race first time round but was eclipsed by China’s sovereign wealth fund CIC, which offered $2.45bn for a directly-owned portfolio of assets………………………………………..Full Article: Source

Sovereign Wealth Funds Play An Increased Role in Real Estate

Posted on 09 September 2015 by VRS  |  Email |Print

There actually isn’t much known about many SWFs, which generally don’t issue press releases, or in some cases, don’t even have a website. Founded in 2007, the Sovereign Wealth Fund Institute (SWFI) has emerged as a go-to source for hard-to-find SWF information.
“It’s still a very opaque market,” says Michael Maduell, president of the Las Vegas-based organization. “There’s actually more real estate purchases by these funds going on than you think.” The SWFI boasts a ranking of SWFs that includes players from China to Azerbaijan. “There was a saying, ‘The sun never sets on the British Empire,’” Maduell said. “The sun never sets on sovereign wealth.”……………………………………….Full Article: Source

An omen for Australia’s commercial property market?

Posted on 08 September 2015 by VRS  |  Email |Print

Even as global investors queue eagerly to get their hands on Australian real estate, one astute investor, Singapore’s sovereign wealth fund GIC Pte Ltd, has been quietly taking profits and selling down its Australian holdings. GIC has sold its five-star hotels, an industrial portfolio, an office building and a key stake in GPT Group, one of Australia’s largest listed trusts.
A quick tally of GIC transactions since 2013 shows these sales have yielded proceeds totalling about $4 billion. The market wonders why GIC is selling out of Australia. Does it perceive Australia’s fortunes to be on the wane? Sources familiar with the modus operandi of GIC point out that to date GIC has been offloading non-core and secondary assets………………………………………..Full Article: Source

Super fund takes different tack on alternative investments

Posted on 07 September 2015 by VRS  |  Email |Print

Richard Brandweiner, the chief investment officer of the $53 billion First State Super retirement scheme, is clearly cautious about investing his members’ money in infrastructure.The former Perpetual executive is also taking a different tack towards the asset class.
Unlike investments such as bonds and equities, and in contrast to most superannuation funds, First State Super has not set a target for the proportion of the portfolio that is invested in infrastructure, hedge funds and private equity. As interest rates remain low and equity markets lose their shine, sovereign wealth and pension funds globally are being pushed into more illiquid assets such as infrastructure and real estate in an effort to maintain returns………………………………………..Full Article: Source

DLF ends flat on possible stake sale to Singapore’s sovereign wealth fund GIC

Posted on 31 August 2015 by VRS  |  Email |Print

Shares of DLF rallied over 3 per cent in trade today as India’s largest real estate developer is close to selling a majority stake in a residential project in New Delhi to Singapore’s sovereign wealth fund GIC, two people aware of the deal said. The share ended the session at Rs 115.05, up 0.52 per cent.
The transaction may be valued at Rs 1,500 crore- Rs 2,000 crore. The 25-acre project in the Moti Nagar area of west Delhi, to be called DLF Capital Greens 6, has secured all approvals and is likely to be launched in the next few months………………………………………..Full Article: Source

Swedish Funds Target €4B Real Estate Investment

Posted on 27 August 2015 by VRS  |  Email |Print

Two of Sweden’s national pensions have collaborated with asset manager TIAA-CREF to create a €2.2 billion ($2.5 billion) real estate joint venture. AP1 and AP2—which between them run roughly €57 billion within Sweden’s national pension system—and TIAA-CREF aim to invest a further €2 billion into real estate through the arrangement in the next three years.
The Swedish funds’ expansion of their property investments comes as Norway’s sovereign wealth fund is ploughing 5% of its €724 billion portfolio into real estate. The Government Pension Fund—Global had 2.7% invested in the asset class at the end of June, according to its second quarter report. The allocation posted a 2% return in the second quarter, while the fund’s equity and bond portfolios both lost money………………………………………..Full Article: Source

The Largest Sovereign Wealth Fund Private Equity Investors

Posted on 19 August 2015 by VRS  |  Email |Print

The aggregate dollar amount of sovereign wealth fund capital toward private equity and private markets is expanding rapidly, according to data from the Sovereign Wealth Fund Institute (SWFI). SWFI researchers estimate, as of June 2015, US$ 415.36 billion was allocated to private equity, this includes direct stakes in private companies, not just interests in private equity funds.
By calculating June 2015 total sovereign wealth fund assets, private equity makes up around 5.7% of all SWF assets. Despite falls in oil and commodity prices, sovereign funds continue to grow and build up exposure to private equity assets. Many of these institutional investors are driven by harvesting the illiquidity premium………………………………………..Full Article: Source

Oman fund acquires 90 per cent stake of Mariott Ambassador Paris Hotel

Posted on 18 August 2015 by VRS  |  Email |Print

State General Reserve Fund (SGRF), the Sultanate’s sovereign wealth fund, has acquired a majority stake in Marriott Ambassador Paris Hotel by purchasing 90 per cent of its shares. The transaction was completed through a joint venture with Westmont Hospitality Group (WHG) which will own 10 per cent of the hotel shares and will provide the operational oversight to the hotel, according to a press release.
WHG has significant experience in managing budget to upscale hotels and currently own and/or manage a portfolio of about 350 hotels across North America and Europe under multiple hotel franchise brands………………………………………..Full Article: Source

U.K. Wealth Fund to Target Private Equity, Infrastructure Investment

Posted on 17 August 2015 by VRS  |  Email |Print

London Mayor Boris Johnson’s fledgling British sovereign-wealth fund plans to combine local public pension funds and invest billions of pounds in private equity and infrastructure projects. The plan to develop a so-called citizens’ wealth fund with more than $100 billion is being led by Edmund Truell, a private equity investor and chairman of the London Pensions Fund Authority.
The London Pensions Fund Authority and the Greater Manchester Pension Fund joined forces in January to create a £500 million ($780 million) infrastructure fund. In December, the London fund agreed a separate £10 billion partnership with the Lancashire County Pension Fund……………………………………….Full Article: Source

Temasek Holdings subsidiary subscribes to shares of Oberoi Realty Limited

Posted on 11 August 2015 by VRS  |  Email |Print

Aranda Investments (Mauritius) Pte. Ltd is an indirect wholly-owned subsidiary of Temasek Holdings Pte. Ltd. Oeroi Realty Limited, India (ORL) is a real estate development company, which primarily operates in Mumbai, with a focus on premium developments. It has a diversified portfolio of projects in mixed-use or single-segment developments, which cover the main segments of the real estate market, namely residential, office space, retail, hospitality and social infrastructure.
In a deal that was completed on 17th July 2015, Khaitan & Co. advised Aranda Investments (Mauritius) Pte. Ltd on all legal aspects of the transaction involving the subscription of the shares of ORL. This deal was valued at approximately USD 51 million (INR 3245 million). The firm provided advice to Aranda Investments (Mauritius) Pte. Ltd on its subscription to 3.34% of the post issue paid-up share capital of ORL………………………………………..Full Article: Source

GIC building up its real estate assets for steady returns

Posted on 07 August 2015 by VRS  |  Email |Print

Sovereign wealth fund Government of Singapore Investment Corporation (GIC) has been acquiring more real estate assets in recent years, and is keeping its ear to the ground for more deals, even as competition in the sector intensifies.
Toppish asset prices and lower returns will define the broader investment environment for the next 10 years, but GIC can use its 30 years’ experience in real estate investment to earn steady returns, said group chief investment officer Lim Chow Kiat. “Generally, prices have gone up, so it’s harder to just buy cheap,” he told a media briefing at GIC’s Capital Tower headquarters………………………………………..Full Article: Source

Brigade-GIC buys Nerolac Paints land in Chennai for Rs 550 crore

Posted on 06 August 2015 by VRS  |  Email |Print

Brigade Properties a joint venture between Brigade Enterprises and GIC, Singapore will jointly acquire a 15.86 acres of land parcel from Global paint major KansaiNerolac Paints in Chennai in a deal valued at Rs 550 crore.
The land parcel located on Perungudi on the Old Mahabalipuram Road in Chennai used to house the company’s manufacturing units out of total five such factories across the country. In March, Brigade-GIC acquired a land parcel for Rs 200 crore from Hindustan Unilever to develop a IT Special Economic Zone (SEZ)of over 3 million sq. ft. in Brookefields, Whitefield, Bangalore. In 2014, Brigade Group and GIC also decided to jointly invest up to Rs. 1,500 crores in developments in various cities of South India including Bangalore and Chennai………………………………………..Full Article: Source

Singapore’s GIC tees up $1b real estate secondaries exit: Report

Posted on 05 August 2015 by VRS  |  Email |Print

The Government of Singapore Investment Corporation (GIC) has hired Greenhill Cogent to sell a large portfolio of real estate fund interests, PERE publication Secondaries Investor said in a report. Singapore’s sovereign wealth fund could sell real estate assets to the tune $1 billion, transaction is expected to launch in the fall, the report added, quoting two unnamed executives familiar with the development.
The report further said that both Greenhill Cogent and GIC did not comment on the development. Secondaries Investor also said that as per a recent report from Greenhill Cogent, real estate secondaries volume was about $3 billion, compared with $4 billion for the whole 2014………………………………………..Full Article: Source

GIC builds up real estate assets for steady returns

Posted on 30 July 2015 by VRS  |  Email |Print

Sovereign wealth fund GIC has been acquiring more real estate assets in recent years, and is keeping its ear to the ground for more deals, even as competition in the sector intensifies. Toppish asset prices and lower returns will define the broader investment environment for the next 10 years, but GIC can use its 30 years’ experience in real estate investing to earn steady returns, said group chief investment officer Lim Chow Kiat yesterday.
“Generally, prices have gone up, so it’s harder to just buy cheap,” he told a media briefing at GIC’s Capital Tower headquarters……………………………………….Full Article: Source

Chinese sovereign fund to buy biggest Aussie office assets

Posted on 30 July 2015 by VRS  |  Email |Print

Sovereign fund China Investment Corp (CIC) plans to buy Australia’s biggest office block portfolio from Morgan Stanley for US$1.82 billion (S$2.5 billion), highlighting Beijing’s appetite for stable assets offshore as the mainland economy sputters. CIC, which established its international unit in 2011 to invest in overseas assets, will acquire the nine office buildings, held by Investa Property Trust, from Morgan Stanley Real Estate Investing, the US firm said in a statement on Monday.
Blackstone Group, Brookfield Asset Management and Dexus Property Group were also competing to purchase the Investa property assets, people familiar with the matter had said earlier. ……………………………………….Full Article: Source

Sovereign wealth funds step up property investments in Asia

Posted on 30 July 2015 by VRS  |  Email |Print

Sovereign wealth funds around the world are pouring money into Asian property to diversify their portfolios as real estate prices surge in major Western cities. The looming U.S. interest rate hike has prompted investors to shift from short-term investments in Asia into the region’s real estate.
The Abu Dhabi Investment Authority is one fund investing in real estate aggressively. It is the world’s second-largest sovereign wealth fund, with operating assets of $679 billion. The fund has reportedly invested more than $50 billion, nearly 10% of its asset holdings, in real estate. In May, it acquired three hotels in Hong Kong for $2.4 billion, the largest real estate investment by a sovereign wealth fund in Asia………………………………………..Full Article: Source

QIA JV to build 57-storey residential tower in London

Posted on 30 July 2015 by VRS  |  Email |Print

Canary Wharf Group, a wholly owned joint venture between Brookfield Property Partners and the Qatar Investment Authority , has received planning approval to build a striking residential tower at its New Phase site (formerly known as Wood Wharf).
The 57-storey building will comprise 468 apartments ranging from studios to large three bedroom family units. It will occupy a prominent waterfront location on the edge of South Dock, directly to the east of the existing Canary Wharf estate. Designed by world-renowned Swiss architects Herzog & de Meuron who created the Beijing Olympics’ Bird’s Nest stadium and the Tate Modern, the cylindrical residential tower will form a key part of the new residential offering at Canary Wharf………………………………………..Full Article: Source

Ireland Strategic Investment Fund forms residential lending platform with KKR

Posted on 30 July 2015 by VRS  |  Email |Print

The Ireland Strategic Investment Fund, Dublin, Ireland, formed a €500 million ($549 million) joint venture with KKR Credit, which will lend to Irish residential development projects. The joint venture, Activate Capital, is a lending platform that could finance the construction of more than 11,000 new homes in Ireland. The platform will lend on a commercial basis to projects, providing companies with loans for up to 90% of the total financing needed.
The €7.6 billion ISIF is contributing €325 million toward the joint venture — the biggest single investment yet by the ISIF, it said in a statement on its website. KKR will provide the remaining €175 million. Robert Gallagher, director at KKR responsible for the firm’s investing activities in Ireland, becomes CEO of Activate Capital………………………………………..Full Article: Source

UAE’s ADIA to buy $170m Irish property

Posted on 29 July 2015 by VRS  |  Email |Print

Abu Dhabi Investment Authority (ADIA) will purchase a $170m site spanning seven acres in Dublin, Ireland. The site includes two hotels. ADIA will work with Irish developer Chartered Land to buy the two former Jurys and Berkeley Court hotels, located on one of Ireland’s most valuable properties.
Independent.ie reported that under the deal, which is expected to conclude in the following weeks, ADIA will finance the purchase transaction, while Chartered Land will redevelop and manage the site. ……………………………………….Full Article: Source

QIA JV to build 57-storey residential tower in London

Posted on 29 July 2015 by VRS  |  Email |Print

Canary Wharf Group, a wholly owned joint venture between Brookfield Property Partners and the Qatar Investment Authority, has received planning approval to build a striking residential tower at its New Phase site (formerly known as Wood Wharf).
The 57-storey building will comprise 468 apartments ranging from studios to large three bedroom family units. It will occupy a prominent waterfront location on the edge of South Dock, directly to the east of the existing Canary Wharf estate………………………………………..Full Article: Source

China’s CIC wins $2.45b Investa office portfolio

Posted on 28 July 2015 by VRS  |  Email |Print

Chinese sovereign wealth fund China Investment Corporation (CIC) has won Investa Property Group’s portfolio of nine office towers with a knockout bid of more than $2.45 billion, making it the biggest direct real estate transaction in Australia’s history.
As foreshadowed by The Australian Financial Review, CIC’s acquisition will show an extremely sharp initial yield of 5 per cent, which could trigger a re-rating of the office sector. An agreement was struck early Monday evening. The deal marks the finish of one part of the long-running sale of the $9 billion Investa Property Group. Handled by UBS and Morgan Stanley, it is the biggest sell-side property transaction globally so far in 2015………………………………………..Full Article: Source

China Sovereign Wealth Fund Breaks Record for Office Property Deal

Posted on 28 July 2015 by VRS  |  Email |Print

One of the world’s largest sovereign wealth funds has acquired a nine-tower portfolio of office assets for a staggering $2.45 billion sum, in what is believed to be the largest direct property transaction in Australian history. An office deal clinched by sovereign wealth fund China Investment Corporation (CIC) has broken the record for the largest direct real estate transaction in the history of the Australian property market.
CIC’s sealed its acquisition of the portfolio of nine office towers owned by Invest Property Group with a peremptory bid of more than $2.45 billion – the largest ever made on Australian shores as part of a direct real estate deal………………………………………..Full Article: Source

ADIA in bid for $1.9bn Irish shopping centre portfolio

Posted on 28 July 2015 by VRS  |  Email |Print

Abu Dhabi’s sovereign wealth fund is reportedly in the running to purchase an Irish real estate loan portfolio valued at €1.7 billion ($1.9 billion). Abu Dhabi Investment Authority (ADIA) is understood to be a lead contender to buy Project Jewel – a loan portfolio that includes debt secured on Dundrum Town Centre, a 120,000 sq m shopping centre in Dublin, among others.
Project Jewel is controlled by Ireland’s National Asset Management Agency (Nama), the government body that took over the country’s distressed real estate assets during the downturn………………………………………..Full Article: Source

State Oil Fund of Azerbaijan hasn’t bought physical gold for 5 quarters at a run

Posted on 28 July 2015 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) hasn’t bought physical gold for five quarters in a row (2nd, 3rd, 4th quarters of 2014, and 1st -2nd quarter of 2015). The Fund informs that as of 1 July 2015 it owned physical gold worth $1.14 bn (last quarter it was $1.15 bn) which was equal to 3.2% of its investment portfolio ($35.726 bn).
“By the reported date SOFAZ had 30.17 tons of gold (970,146 ounces of gold),” SOFAZ said in a statement. This level of reserves conformed to the index as of 1 April 2014. The investment rules allow the Fund to invest up to 5% of its portfolio in physical gold………………………………………..Full Article: Source

CIC Teams with AEW to Close on $1.44B European Mall Portfolio

Posted on 17 July 2015 by VRS  |  Email |Print

China Investment Corporation (CIC) has joined with investment manager AEW Europe to acquire a fleet of 10 malls in France and Belgium from CBRE Global Investors for €1.3 billion ($1.44 billion). The retail acquisition is believed to be the largest yet for CIC, which is China’s biggest sovereign wealth fund and is part of a growing wave of investments by Chinese institutional investors in Europe.
The price paid exceeds CBRE Global Investors reported asking price of €1.2 billion ($1.35 billion), and is well in excess of the $1.2 billion that the two sides were reported to have agreed upon by the French media last month………………………………………..Full Article: Source

CIC completes $1.4 billion acquisition of Belgian, French shopping centers

Posted on 15 July 2015 by VRS  |  Email |Print

China’s largest state investment fund has bought 10 shopping centers in France and Belgium for about €1.3 billion ($1.44 billion), one of its biggest acquisitions in Europe. China Investment Corp., along with affiliate AEW Europe, bought the portfolio of malls from CBRE Global Investors, according to company statements.
Chinese investors have been scooping up international property in a push to diversify their holdings. In Europe, they have purchased $4.7 billion of real estate in the past 12 months, including this latest CIC deal, according to Real Capital Analytics data………………………………………..Full Article: Source

DLF to raise funds via PE, in talks with GIC

Posted on 15 July 2015 by VRS  |  Email |Print

Realty major DLF is likely to raise Rs 2,500-3,000 crore by next month via private equity and is in talks with Singapore government’s investment arm GIC to sell stake in a new housing project in New Delhi. According to sources, it is in advanced stage of talks with sovereign wealth fund GIC to sell up to 49 per cent stake in the new residential project in the National Capital. The deal is expected to close in the next one month, they added.
DLF is planning to launch a new residential project spread over 20-25 acres near Moti Nagar, adjacent to its existing housing project ‘Capital Green’. The regulatory approvals are in place to launch this project, comprising about 3,000 apartments, sources said. When contacted, the company spokesperson said: “We do not comment on market speculations.”……………………………………….Full Article: Source

China wealth fund buys US$1.4b of European properties

Posted on 14 July 2015 by VRS  |  Email |Print

China’s sovereign wealth fund bought retail properties in France and Belgium valued at about 1.3 billion euros (US$1.4 billion) from a fund managed by CBRE Global Investors. China Investment Corp acquired the properties with affiliates of AEW Europe, according to a statement Monday. The deal includes two shopping centers near Antwerp, Belgium, as well as malls, a retail park and other stores across France, CBRE Global Investors said.
International investors are buying retail properties in continental Europe to take advantage of a nascent economic recovery. Offices, shops and logistics buildings valued at 87.3 billion euros changed hands in the first quarter, 25 percent more than a year earlier, according to data compiled by BNP Paribas Real Estate………………………………………..Full Article: Source

Asia real estate vehicles tap demand from SWFs

Posted on 10 July 2015 by VRS  |  Email |Print

A majority of sovereign fund commitments in 2014 were to opportunistic funds, while pension funds and insurance companies preferred core strategies. Multi-billion dollar demand for Asian real estate investments has boosted the fund raising efforts of global managers such as Prudential and CLSA.
Anrev’s survey highlighted the fact that, globally, nearly 70% of sovereign wealth fund commitments in 2014 were to opportunistic funds, while pension funds and insurance companies preferred to allocate to open-end funds and core strategies………………………………………..Full Article: Source

China Investment Corporation favoured for Investa Property

Posted on 08 July 2015 by VRS  |  Email |Print

China Investment Corporation, the world’s fourth-largest sovereign wealth fund, has moved into pole position for Morgan Stanley’s $8.9 billion-backed Investa Property Group, even as rival suitor Cromwell Property Group strengthens its consortium with the inclusion of the Future Fund.
Australia’s $117bn sovereign wealth fund has thrown its weight behind Cromwell’s tilt by offering a higher-yielding mezzanine loan, alongside one of Australia’s largest superannuation funds, First State Super. The final configurations for the Investa assets emerged as Morgan Stanley and its adviser, UBS, started to sift through second-round bids after yesterday’s midday deadline………………………………………..Full Article: Source

Adia in the hunt for $6.7bn Australian property portfolio

Posted on 08 July 2015 by VRS  |  Email |Print

The Abu Dhabi Investment Authority (Adia) is among the bidders for a US$6.7 billion Australian property portfolio. The sovereign wealth fund is understood to be bidding with Dexus Property Group for the real estate being sold by Morgan Stanley’s Investa Property Group. Adia declined to comment and Dexus was not immediately available.
Blackstone Group and Brookfield Asset Management are also among the bidders, Bloomberg reported earlier citing unidentified people with knowledge of the matter. Other bidders include LaSalle Investment Management with China Investment Corporation and Cromwell Property Group with Redefine Properties………………………………………..Full Article: Source

SWFs in Latin America and Middle East consider their first hedge fund allocations

Posted on 03 July 2015 by VRS  |  Email |Print

For any hedge fund manager, winning a mandate from a sovereign wealth fund (SWF) is the Holy Grail. These are the biggest institutional investors on the planet and also offer, potentially, the stickiest capital given their multi-year investment horizons.
One should therefore take encouragement from the fact that SWF allocations to hedge funds have steadily risen from 31 per cent in 2013 to 33 per cent today, according to the latest research by Preqin in their Hedge Fund Spotlight June report. But the fact remains that SWFs remain under-allocated to the asset class; 60 per cent do not invest at all. That is quite a contrast to the way they use other alternative assets………………………………………..Full Article: Source

Norway Oil Fund Asked to Divest Coca-Cola Shares

Posted on 02 July 2015 by VRS  |  Email |Print

Activists from India and Norway are calling on Norway’s Government Pension Fund Global – the world’s largest sovereign wealth fund – to exclude the Coca-Cola company from its investment portfolio because of the company’s irresponsible water management practices in India. The Government Pension Fund Global (the Fund), with a market value of 6,970 billion Norwegian Kroner (US$ 890 billion), has close to US$ 1 billion invested in the Coca-Cola company alone, and also has shares in other Coca-Cola related companies.
FIVAS – Foreningen for Internasjonale Vannstudier (Association for International Water Studies), a Norway-based NGO has produced a report – Dead in the Water – that highlights Coca-Cola’s water mismanagement in India. The report makes the case for the Fund to divest from the Coca-Cola company because the investment is financially risky and undermines social and environmental sustainability………………………………………..Full Article: Source

Japan’s priciest land plot hits 22-yr high even as national prices slip

Posted on 02 July 2015 by VRS  |  Email |Print

Japan’s priciest plot of land hit a 22-year high even as nationwide prices notched a seven-year slide, widening the divide between major cities and the outlying regions, a government survey showed on Wednesday. Japan’s market is already crowded with large foreign investors such as U.S. buyout firm Blackstone Group and Singapore’s sovereign wealth fund GIC Pte.
Norges Bank Investment Management, which manages the world’s largest sovereign wealth fund, also plans to open an office in Tokyo to seek real estate investment opportunities, a sign that more money is coming to Japan………………………………………..Full Article: Source

Korea Sovereign Wealth Fund Plans to Increase Alternative Assets

Posted on 02 July 2015 by VRS  |  Email |Print

South Korea’s $84.7 billion sovereign wealth fund plans to increase investments in real estate, private equity and infrastructure, according to its chairman. Korea Investment Corp. will raise its allocation for alternative investments to 15 percent by year-end from 8 percent currently, and will aim for 50 percent over the next five years, Chairman Ahn Hongchul told reporters in Seoul Wednesday at a seminar celebrating its 10th anniversary.
The fund only invests overseas and $76.7 billion, or 90.5 percent of its total net assets, was allocated to stocks and bonds in 2014, according to its annual report issued in May. The company’s initiative comes as the South Korean government plans to boost outbound investment to support a weaker currency………………………………………..Full Article: Source

Qatar Investment Authority may join race for $1bn Barangaroo tower

Posted on 29 June 2015 by VRS  |  Email |Print

Sydney’s Barangaroo precinct is taking shape as local developers and heavyweight international funds jostle for the last elements of the harbourside urban regeneration project. As Barangaroo South developer Lend Lease and the NSW government last Friday announced the 500th apprentice at the $6 billion office, apartment and leisure precinct, the industry was awash with talk that global real estate trophy-hunter, the Qatar Investment Authority, was targeting the final $1 billion office tower.
While Lend Lease would not be drawn, the developer’s holdings in the area had already been bolstered earlier in the week when plans for a new train station at the neighbouring 5.2-hectare Barangaroo Central area were unveiled. Bidders that were short-listed for the $1bn mixed use precinct welcomed the station………………………………………..Full Article: Source

Sovereign Wealth Funds Active In Hedge Fund Space: Preqin

Posted on 29 June 2015 by VRS  |  Email |Print

Sovereign wealth funds have become increasingly active in the hedge fund space, with a steadily increasing allocation to the asset class, notes Preqin. In its June 2015 Hedge Fund Spotlight report titled: “Sovereign Wealth Funds Investing in Hedge Funds”, Preqin highlights that during stock market volatility, hedge funds offer a favorable alternative in offering uncorrelated returns to traditional markets and opportunities worldwide.
The Preqin report points out that though sovereign wealth funds constitute less than 1% of all investors in hedge funds, they represent about 11% of all capital invested in hedge funds by institutions. As sovereign wealth funds have fewer short-term liabilities, they typically seek investments with a longer investment horizon compared with other institutions. Thus, the twin effect of large ticket sizes and long-term investment horizon of sovereign wealth funds offer a “game changer” opportunity for a hedge fund manager………………………………………..Full Article: Source

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