GIC Possible Assist in Worldpay Bid
Private equity giants Blackstone Group and Hellman & Friedman are teaming up to acquire U.K.-based Worldpay, a payments processing company that is trying to float £6 billion onto the London stock exchange. The private equity group may include Singapore’s GIC Private Limited to have additional financial firepower in the deal. Worldpay is currently owned by private equity firms Bain Capital and Advent who acquired the company from the Royal Bank of Scotland (RBS).
New York State Teachers’ Retirement System Awards Grosvenor RE Debt Mandate
The New York State Teachers’ Retirement System (NYSTRS) hired Grosvenor Capital Management to manage a US$ 100 million separate account. The allocation will target real estate debt, placing money with emerging real estate debt managers. The money will target a net IRR of around 9% to 10%.
Furthermore, NYSTRS extended its contract one year starting in September with Cohen & Steers Capital Management on a separate account REIT mandate. NYSTRS invested with Cohen & Steers back in 2007 with a US$ 100 million allocation. As of June 30, 2015, the market value of the account is US$ 165.6 million.
GIC Bets on East Germany Real Estate
In early August, Singapore’s GIC Private Limited acquired a more than 10% shareholding in Berlin-based TLG IMMOBILIEN, a real estate company that targets commercial property in east Germany.
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Institute Fund Summit Europe 2015
26-27 October 2015
Hotel Okura, Amsterdam
Oman Antimony JV Slightly Alters Capital Structure to Favor Debt
London-based Tri-Star Resources PLC, a mining company, basically agreed in principle to change the capital structure of its holding joint venture company which is building a 20,000 ton per year antimony processing facility in Oman. The development is part of the greater the Oman Antimony Roaster project. The joint venture company is called Strategic and Precious Metals Processing LLC and Tri-Star Resources owns a 40% stake in it. Other investors in the JV are the Oman Investment Fund and DNR Industries Ltd, which was formerly known as Castell Investments Ltd. Total funding for the project had not been modified from US$ 70 million. What is changing is the mix of funding, using more debt and less equity. Under the amended terms, US$ 15 million in equity is being provided by the JV partners versus the previous US$ 20 million. This is while a US$ 15 million mezzanine loan is being used over the previous US$ 10 million mezzanine loan.
Qatari Diar and JV Partner Unloads 2 London Buildings
The joint venture between Qatari Diar Real Estate Investment Co., a unit of the Qatar Investment Authority (QIA) and Canary Wharf Group (controlled now by QIA and Brookfield Property Partners LP), agreed to sell two London office buildings located in South Bank district to Almacantar SA for more than £550 million pounds. Almacantar is headed by Land Securities Plc executive Mike Hussey.
Origin Energy Lists Stake in Contact Energy for Sale
Macquarie Capital has been hired to sell Origin Energy’s NZ$ 1.81 billion stake in Contact Energy. Possible investors include Australia investors and Asian sovereign wealth funds.
Saudi Arabia’s Foreign Reserves Keep Falling
Saudi Arabia’s net foreign reserves dropped to 2.492 trillion riyals (US$ 664.5 billion) in June. This is down 1.2% from May 2015. Reserves are at their lowest levels since March 2013. In June, SAMA sold US$ 32.4 billion of securities, while boosting deposits to US$ 22.9 billion.
Gaw Capital Sells Cross Tower Shanghai Building
Hong Kong-based Gaw Capital Partners has agreed to sell the Cross Tower, a 24-storey commercial building in Shanghai, to World Union Investment Management, for 2.66 billion RMB (US$ 402 million). The tower is located in the Huangpu district.
RDIF Portfolio Company Geopharm Plans to Increase Insulin Production
Russia-based Geopharm is a portfolio company of the Russian Direct Investment Fund (RDIF). Geopharm signed a special investment agreement with the City of St. Petersburg, Russia. Geopharm plans to invest more than 3.3 billion rubles in building a complex to meet insulin production demands.
Norway’s KLP to Exclude Companies with Oil Sands Extraction via Revenue Threshold
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The New Zealand Superannuation Fund (NZ Super) has resumed receiving contributions from the New Zealand government in the face of rising obligations as an increasing proportion of the country’s population approaches retirement. According to a statement released by the fund’s managing Board of Guardians, the government plans on investing US$ 5.3 billion into NZ Super between now and June of 2022, with the first payment scheduled for December 15, 2017.
Policymakers believe the resumption of government contributions, which were halted in July of 2009, is expected to ease the burden on the country’s current taxpayers and future generations. Withdrawals from NZ Super are expected to peak in 2078, at which point the fund will be covering 12.8% of New Zealand’s pension obligations. The new wave of contributions will initially be invested in passive, low cost equity and bond investments, according to Catherine Savage, Chair of the Guardians.
Recent Performance & Leadership Change
NZ Super has enjoyed one of its best annual performances since its founding in 2001, with a reported return of 20.7% before tax for a 12-month trailing period ended June 30, 2017, up 5 billion NZD (US$ 3.6 billion) compared to 2016. NZ Super generated 21.85% annual return in its global equities, developed market portfolio, according to its 2017 annual report.
NZ Super faces a changing of leadership in the coming year with the exit of chief executive Adrian Orr, who will leave the Fund officially in March of 2018 to serve a five-year term as Governor of the Reserve Bank of New Zealand. Mr. Orr has earned a spot numerous times in the Sovereign Wealth Fund Institute’s Public Investor 100 annual ranking over the years, most recently in 2017 at #3.
Card transaction platform iZettle AB has raised another US$ 47 million in Series E funding, this time with new backing from Sweden’s AP4 and early-stage venture capital firm Dawn Capital. Previous investors in the Stockholm-based payments business include American Express, MasterCard, Intel, and Spain’s Santander Group. With US$ 235 million in equity to date, iZettle is quickly approaching an estimated valuation of US$ 1 billion.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]
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