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GM Plan Seeks to Unload Woodfield Mall, CalPERS Interested

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The pension plan of General Motors Co. is currently in the process of divesting large swaths of real assets including private equity interests and properties. The US$ 94 billion plan is shedding illiquid assets as it transferred certain salaried retiree benefit obligations in the approximate amount of US$ 26 billion to the Prudential Insurance Company of America. In return, General Motors will purchase a group annuity contract from Prudential.

The California Public Employees’ Retirement System (CalPERS) owns 50% of Woodfield Mall, which based in Schaumburg, Illinois, is a joint-venture property investment with the General Motors’ plan. Part of the joint venture agreement enables CalPERS the right to have the first glance at buying GM plans’ interest in Woodfield Mall. CalPERS is eager to purchase the remaining interest in the regional shopping center for around US$ 500 million. The GM pension plan purchased the Woodfield Mall interest fourteen years ago.

Long-term investors are deeply interested in high-quality malls that can generate stable cash flows.

Woodfield Mall is the ninth largest shopping center in the United States. Buying trophy malls that provide strong cash flows is a rarity as many owners would refuse selling such an asset in a low-yield fixed income environment.

GIC Buys Large Stake in Nordic Aviation Capital

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Singapore’s GIC Private Limited, a yield-hungry sovereign investor, invested in Denmark-based Nordic Aviation Capital A/S, becoming a significant minority shareholder. Other shareholders in Nordic Aviation Capital include EQT VI Limited fund, KIRKBI Invest (wealth origins tied to Legos), and Martin Møller, the founder of Nordic Aviation Capital. EQT VI will remain the largest shareholder of Nordic Aviation Capital. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Trump Wants Pharma Companies to Disclose Drug Prices in Advertisements

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U.S. President Trump is progressing on plans to mandate pharmaceutical companies to reveal their prices in drug advertisements. “The drug industry remains resistant to providing real transparency around their prices, including the sky-high list prices that many patients pay,” Health and Human Services Secretary Alex Azar said in a statement. “So while the pharmaceutical industry’s action today is a small step in the right direction, we will go further.”

The U.S. Health and Human Services Department would require pharmaceutical companies to include drugs’ sticker prices in their video advertisements. This would be similar to how drug companies disclose the laundry list of side effects.

Increasingly, sovereign funds like Temasek Holdings have backed mid-stage pharmaceutical companies and other therapies, while market investors like Norway’s GPFG have large holdings in listed pharmaceutical companies.

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Kazatomprom Treads Closer to IPO

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Kazatomprom is the world’s biggest uranium producer, accounting for around 20% of production market share. The company is moving forward on floating up to a 25% company stake for its planned initial public offering in London and Astana, Kazakhstan. Kazatomprom’s IPO plans are subject to market conditions. The global market price of uranium generated significant price gains year-to-date through almost three quarters. So far, during 2018, the uranium spot price has moved from US$ 20 per pound to US$ 27 per pound.

Kazatomprom’s sole shareholder is Samruk-Kazyna. Samruk-Kazyna would retain at least a 75% stake in the company.

Advisors

Credit Suisse and JPMorgan are joint global coordinators and joint bookrunners for the share offering. China International Capital Corporation, Halyk Finance, and Mizuho International plc were joint bookrunners.

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