Sovereign Wealth Fund Institute

The Alaska Permanent Fund which as of August 24, 2011, had a value of US$ 37.58 billion in assets has purchased a stake in a Class A New York property. The APFC is an active investor in core real estate throughout the United States.

The Rockpoint Group was the seller in this transaction. The 49.5% stake was for an office property on 299 Park Avenue at the cost of $1,075 per square foot. The real estate deal has revalued the whole property at US$ 1.25 billion. The majority owner is developer Fisher Brothers who occupies the top two floors of the building. The Park Avenue office building was completed in 1967.

The building is well leased by several financial firms, including being the New York City headquarters for UBS Investment Bank.

Brief History
Jan 2010 – UBS sells 49.5% stake to Rockpoint Group for US$ 150 million in cash and assumes US$ 325 million mortgage

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According to the Wall Street Journal, “Malaysian sovereign-wealth fund Khazanah Nasional Bhd. has raised around MYR1.18 billion (US$380 million) from the placement of 147 million shares in CIMB Group Holdings Bhd. (1023.KU), lowering its stake in the Southeast Asian banking group to 29.0% from 31.01%, a person familiar with the deal said Tuesday. The shares, representing around 2% of CIMB’s issued and paid-up share capital, were placed at MYR7.99 each to investors mainly in Asia and Europe, the person said.

CIMB’s shares closed Tuesday at MYR8.10. The placement was completed Monday night, the person said, at a 2% discount to their Monday closing level of MYR8.15.

UBS AG (UBS) was the sole bookrunner on the deal.”

Source: Wall Street Journal

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According to Reuters, “Singapore’s biggest sovereign wealth fund, GIC, said it converted its UBS notes into ordinary shares, suffering a paper loss of about $5 billion.

The Government of Singapore Investment Corp had invested 11 billion Swiss francs ($10.22 billion) in mandatory convertible notes in UBS to support the Swiss bank during the financial crisis. GIC did not provide more details, but a filing it made to the U.S. Securities and Exchange Commission early last month showed the original conversion price would be 47.7 Swiss francs, two-thirds more than UBS’s last share price of 15.86 francs. GIC had earned about 2 billion francs from a 9 percent coupon over the last two years, which partially compensated for the sharp erosion in UBS’ share price.

“GIC confirms the conversion,” a spokeswoman for the Singapore wealth fund said in response to Reuters’ queries.”

read more: Reuters

Reuters reports that, “the Government of Singapore Investment Corp (GIC) said on Tuesday it plans to continue holding its stakes in Citigroup and UBS.

‘GIC is a long-term investor and will continue with its investments in Citigroup and UBS,’ a GIC spokeswoman told Reuters.

Some analysts had expressed concerns GIC and other sovereign funds might follow in the footsteps of Temasek, which sold off its 3 percent stake in Bank of America in the first quarter to realise a hefty loss of at least $3 billion.”

read more: Reuters

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Reuters reports that, “The Government of Singapore Investment Corp (GIC) turned down an offer of a seat on the board of UBS AG to assuage concerns the city-state might take control of the Swiss bank, local media reported on Monday, quoting GIC Deputy Chairman Tony Tan.”

Source: Reuters