Archive | November, 2012

CalSTRS Announces Real Estate Partnership to Serve Urban Markets

The press release states, “the California State Teachers’ Retirement System (CalSTRS) today announced the launch of a real estate joint venture focused on urban retail properties in underserved communities. The partnership has the potential of reaching $250 million in commitments. CalSTRS partnered with Dallas-based Sarofim Realty Advisors in 2004 to form the Community Retail Development […]

Virginia Retirement System Commits Capital to Wireless Infrastructure Fund

The US$ 55 billion Virginia Retirement System (VRS) currently has a US$ 4.8 billion allocation towards real estate including infrastructure.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Caisse des Dépôts and Qatar Holding Create MoU for French SMEs

According to the press release, “Caisse des Dépôts and Qatar Holding LLC today announces the signing of a Memorandum of Understanding (MOU) to co-invest in small and medium enterprises (SME) based in France. Under the terms of the MOU, a joint partnership will be established with €300 million of capital. Both MOU partners will each […]

TPSF Commits More to Opportunistic European Real Estate

The US$ 25.9 billion Texas Permanent School Fund (TPSF) based in Austin, Texas, is committing to increased exposure to opportunistic European real estate. This is the sovereign fund’s second commitment to opportunistic European real estate in 2012. These opportunistic funds tend to invest by inserting capital and providing active management in distressed situations. The goal […]

Norway’s GPFG Makes First Real Estate Investment in Switzerland

According to the press release, “the Norwegian Government Pension Fund Global today bought the Uetlihof office complex in Zurich for 1 billion Swiss francs, or about 6.1 billion kroner, from the Swiss bank Credit Suisse. Credit Suisse will lease the property for 25 years starting today and has the option to extend the lease by […]

Abu Dhabi’s IPIC to Raise $2.9 Billion in Bonds

Abu Dhabi’s International Petroleum Investment Co. (IPIC) plans to raise about $2.9 billion in bonds. IPIC is seeking to attract fixed income investors so that it can leverage and finance more energy investments and projects. IPIC continues to invest and buy into refinery, liquefied natural gas developments, and other assets in the hydrocarbon value chain. […]

Japan’s GPIF Pursues Feasibility Studies on Alternative Assets

Japan’s aging population and low birth rate are mounting pressure on the pension system to generate higher returns. A Japanese government agency showed a survey that said by 2060, the population of Japan will fall by 30%, down to 90 million people. Historically, the GPIF has been one of the largest purchasers of Japanese government […]

Sovereign Investors Grasp the Real Asset Investment Paradigm

Should sovereign investors fear unsustainable fiscal deficits, or should they accept the reality and search for other assets, higher yield, more risk? Let’s take a step back, the U.S. credit rating was downgraded to AA+ by Standard and Poors, the Federal Reserve’s balance sheet has massively expanded since late 2007, the price of gold endures […]

Straumann Investor Sells a 10% Stake to Singapore’s GIC

The press release states, “Straumann Holding AG has been informed by two of its existing shareholders about a transaction involving a 10% block of registered shares. Dr h.c. Thomas Straumann, who is the major shareholder and Vice Chairman of the Board, has sold the shares to the Government of Singapore Investment Corporation Pte. Ltd. (GIC), […]

Qatar Sells Barclays Warrants, Maintains 6.7% Stake

Qatar Holding LLC formally made plans to sell Barclays Plc shares as the sovereign wealth enterprise (SWE) of the Qatar Investment Authority (QIA) rids itself of their remaining warrants. 379 million units of Barclays warrants have been monetized by Qatar Holding LLC. The SWE remains the largest shareholder of Barclays Plc with a 6.65% stake. […]

Oxford Properties Snags CBRE HQ for £110 Million

Oxford Properties purchased the City of London headquarters of CBRE for £110 million. The sale price reflects a yield of 5.5%. It is leased to CBRE until 2023. The 127,865 square foot property is St Martin’s Court, Paternoster Square, was property of Legal & General Investment Management (LGIM). In 2003 LGIM bought the property for […]

Q&A with Dr. Mohammad Reza Farzin, Chairman of the Managing Board of National Development Fund of Iran

This interview will appear in the 4Q Y2012 (Jan 2013) issue of the Sovereign Wealth Quarterly. This is a Q&A with Dr. Mohammad Reza Farzin, Chairman of the Managing Board of National Development Fund of Iran. Dr. Mohammad Reza Farzin was appointed as the Chairman of the Board of Executive Directors at the end of […]

Underwater Treasures Lead to Possible SWF Creation on Cook Islands

The government of Cook Islands has floated the idea of launching a sovereign wealth fund. The proposed sovereign fund would be funded by revenues generated from seabed mining. Located in the Pacific, the Cook Islands consist of a group of fifteen islands, with a total land area of around 90 square miles. The Cook Islands […]

Qatar and Italy Partner for up to €2 Billion JV to Assist Italian Champions

On November 19, 2012, the government of Qatar agreed to invest up to €1 billion in “Made in Italy” companies. National industry leaders in Italy are seeking capital to bolster operations, grow exports and retain employees. Large private companies and companies closely-owned by local governments are experiencing shortages of capital to maintain operations. France is […]

Public Release – 3Q 2012 Linaburg-Maduell Transparency Index Ratings

The third quarter results for 2012 on sovereign wealth fund transparency have now been released to the public. Click on the index image to increase size. Read more Linaburg-Maduell Transparency Index

PBGC Record Deficit $34 Billion in FY 2012

The Pension Benefit Guaranty Corporation (PBGC) hit a record deficit of US$ 34 billion in fiscal year 2012. The agency’s deficit has been increased by lower interest rates. These rates are an input in valuing plan liabilities. According to PBGC Director Joshua Gotbaum in a statement the “PBGC continues its work to preserve pensions and […]

KIA Gives Real Estate Mandate to Markaz

The Kuwait Financial Centre (Markaz) signed a contract with the Kuwait Investment Authority (KIA) to create and manage a portfolio of property investments with a maximum value of KD 250 million for a 10-year period. This portfolio of property investments is in Kuwait’s real estate market. Markaz was created in 1974 by Kuwait’s late Sheikh […]

Texas Permanent School Fund Drops Two More Managers

The Texas Permanent School Fund (TPSF) has dropped two more managers to save on hedge fund fees and streamline relationships. The TPSF dropped GAM Holdings AG and Mesirow Financial Inc. Holland Timmins, the chief investment officer of the TPSF, pushed for the modification as 10% of TPSF assets are invested in hedge funds, yet they […]

ADIA Buys Large Office Property in Ghent

The Abu Dhabi Investment Authority (ADIA) has purchased the Zuiderpoort office complex in Ghent, Belgium. The building was owned by Icelandic bank SJ1; they purchased the property for €163 million in 2006. It is located at G. Crommenlaan 9. The property is 675K sqft and is the biggest office transaction this year so far in […]

Singapore’s GIC RE Bids in Court for Club PGA West

Since Paulson & Co and the Winthrop Realty Trust missed a debt interest payment, it triggered the auction in the Fall of 2012 for Club PGA West. The only known bidder so far for Club PGA West is GIC RE, the sovereign wealth enterprise of the Government of Singapore Investment Corporation (GIC). If there is […]