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GM Plan Seeks to Unload Woodfield Mall, CalPERS Interested

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.

SouthGobi’s CEO Arrested, CIC Struggles with Investment

The China Investment Corporation (CIC) has long struggled with its investments in coal assets, specifically in globally-listed coal miner SouthGobi Resources Ltd, which operates its flagship coal mine in Mongolia. In November 2009, CIC and SouthGobi Resources inked a convertible debenture deal. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Qatar Central Bank Deals with MSCI

MSCI, a stock index company whose benchmarks influence investor behavior, has tremendous indirect power impacting the stock markets of smaller economies. In 1988, MSCI released its emerging markets index, a now-widely-used benchmark for many institutional investors wanting access to growth markets. China and South Korea make up the majority of the benchmark, but smaller economies such as Poland, Chile and even Qatar make up other pieces of it.

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bcIMC Buys into Bottling Business with PAI in €1.623 Billion Takeover of Refresco

Dutch soft-drink bottler Refresco Group N.V. has agreed to a buyout offer for all 81.2 million of its shares from French private equity firm PAI Partners SAS (PAI) and Canadian pension manager British Columbia Investment Management Corporation (bcIMC) in exchange for €20 in cash per ordinary share for a total consideration of €1.623 billion. Refresco’s major shareholders, which includes 3i Group, and shareholding members of its boards, who represent 26.5% of outstanding shares, have said they stand behind the deal.

Refresco’s board rejected an initial offer from PAI in April 2017 of €1.4 billion, which they felt did not adequately capture the value added by their plans to bolster its presence in North America through the acquisition of Canadian bottler Cott TB, a deal that went through in July for US$ 1.25 billion.

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