COMPETITION: Sovereign Wealth Funds Spice Up Deal Activity in Asia

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Sovereign wealth funds continue to expand their reach in a variety of transactions across Asia. The Qatar Investment Authority (QIA) is competing against Goldman Sachs on the acquisition of the Keangnam Hanoi Landmark Tower. The 72-story tower is the tallest building in Hanoi and is worth an estimated US$ 1 billion. Korea-based Keangnam Enterprises, Ltd is the developer and seller of the tower.

Goldman Sachs’ offer would be assuming project-financing debt of US$ 900 million and formation of a special purpose vehicle to take over control of the tower. The QIA’s offer is to acquire the whole tower for US$ 800 million in cash. The New York office of Colliers International is the lead manager of the sale. Major companies such as KPMG, Standard Chartered and PwC have reserved space to setup offices in the tower. The tower includes an InterContinental hotel.

Temasek Eyes Postal Savings Bank of China

BNP Paribas, UBS and Temasek Holdings are among a selection of institutional investor bidders attempting to acquire up to a 10% stake in Chinese state-owned Postal Savings Bank of China (PSBC) for at least US$ 3 billion. PSBC is China’s largest bank in terms of outlets (around 40,000 branches), not in assets. The bank is preparing its initial public offering (IPO) for 2016, looking to raise US$ 25 billion. The Government of China would be open to selling a larger stake and is keen on selling to strategic investors versus typical commercial investors.

China International Capital Corporation (CICC) and Morgan Stanley are arranging the pre-IPO sale.

Sovereign Wealth Funds Makes Dough on Chinese Bank Investments

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