Trophy Manhattan real estate is in demand for foreign income investors. Meraas Capital LLC, a Dubai-based private equity firm and US Real Estate Opportunities I, L.P., a Goldman Sachs managed fund whose principal investors are government investors from Kuwait and Qatar, are selling a 40% stake in the General Motors Building. The tower buyers are M. Safra & Co, an investment firm owned by the Safra family and the family of Zhang Xin, CEO of Soho China Ltd. The Sungate Trust is the holding entity for the new investors. Soho China Ltd. is one of the biggest office developers in Shanghai and Beijing.
The deal values the 50-story iconic tower, across from the Plaza Hotel, at US$ 3.4 billion.
The stake will be purchased for around US$ 1.4 billion. Boston Properties Inc, a real estate investment trust, will retain the 60% majority ownership in the property.
Back in 2008, Boston Properties Limited Partnership and US Real Estate Opportunities I, L.P., a Goldman Sachs managed fund partnered with Meraas Capital LLC to buy the building. Part of a bigger deal, with regard to the GM building, the group paid US$ 2.8 billion. Harry Macklowe was the previous owner at the time; he purchased the building in 2003 for US$ 1.4 billion. At the time, it was the highest full sale price paid for a single office building in the United States.
Atlas Merchant Capital LLC and Singapore’s GIC Private Limited acquired just under a 25% equity stake in Dresher, Pennsylvania-based Ascensus, the largest independent recordkeeping services provider, third-party administrator, and government savings facilitator in the United States. San Francisco Genstar Capital LLC and New York-based Aquiline Capital Partners LLC were the sellers of the shares in Ascensus and will maintain control over the company.
Atlas Merchant Capital LLC was founded by Bob Diamond and David Schamis. Diamond is the former group chief executive of Barclays plc.
GIC is an investor in Alight Solutions, a provider of human capital solutions.
Barclays acted as the lead financial advisor and J.P. Morgan acted as financial advisor to Ascensus in connection with this transaction. Willkie Farr & Gallagher LLP acted as legal counsel to Ascensus.
Debevoise & Plimpton LLP acted as legal counsel to Atlas Merchant Capital and Sidley Austin LLP acted as legal counsel to GIC.
In 2015, JC Flowers sold Ascensus to Genstar Capital and Aquiline Capital Partners.
The Value of Research: Skill, Capacity, and Opportunity
This article is sponsored by S&P Dow Jones Indices.
How much should a portfolio manager be willing to pay for research? The question is of importance to any manager, but has become particularly pertinent since newly imposed European rules require that the costs of investment research—previously offered by many investment banks as an in-kind consideration in return for brokerage business—be unbundled from trading.
Unfortunately, attempts to determine a fair value for research in the most general circumstances are doomed to fail. Even if we only consider direct recommendations to buy or sell certain securities, the value of such recommendations to a portfolio manager will vary according to the absolute size of positions taken in response. Instead, we provide a framework for estimating relative research values across markets and constituents, under certain stylized (but reasonable) assumptions.
REPORT: The Value of Research: Skill, Capacity, and Opportunity
Malaysia’s Khazanah Nasional Berhad is prepping to declare more than 1 billion MYR in a dividend payout to the Malaysian government for 2019. Khazanah Nasional is undergoing a significant strategy shift to focus more on domestic assets, while selling off venture tech investments, overseas real estate, fund investments, and other non-strategic assets. The wealth fund also plans to scale back its overseas presence in markets such as San Francisco and London.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]
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