Real Estate Investments, More Attractive for Sovereign Wealth Funds
Data: Nov 2014, Sovereign Wealth Fund Transaction Database
According to data from the Sovereign Wealth Fund Transaction Database, sovereign wealth funds in total invested US$ 17.5 billion for the first 3 quarters of 2014 versus US$ 12.95 billion for the first 3 quarters of 2013 in direct real estate, a whopping 35.1% increase. The competition for core real estate assets is mounting in cities like New York, London, Paris and San Francisco.
Core, Industrials, Development
For example, the Alaska Permanent Fund Corporation (APFC) recently acquired a 50% interest in two shopping centers in Spain and Portugal in a €280 million transaction with Immochan. Across the Atlantic, Singapore’s GIC is leading an investor group to acquire Chicago-based IndCor Properties Inc from the Blackstone Group.
From U.S. pension funds to asset-heavy sovereign wealth funds, Singapore is calculating that more institutional investor assets globally are being committed to the Asia region. The Monetary Authority of Singapore (MAS), Singapore’s central bank, signaled and planned to commit US$ 5 billion with locally-based fund managers who will invest in private enterprises and infrastructure projects. The beneficiaries of the mandates will be private equity and infrastructure fund managers. MAS is seeking to lure top global asset managers to Singapore and firms that have a significant footprint in Singapore could be eligible for the funds. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]
In one of the largest transactions in the French office sector, Ivanhoé Cambridge, real estate subsidiary of Caisse de dépôt et placement du Québec (CDPQ), has acquired a 90,000 square meter office-building campus from Natixis, in the Greater Paris area of Saint-Denis Pleyel. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]
GIC Private Limited, Singapore’s sovereign wealth fund, has entered into a 50:50 joint venture with Raffles City China Investment Partners III (RCCIP III), a fund controlled by CapitaLand. The joint venture is acquiring Shanghai’s tallest twin towers for an aggregate consideration of RMB 12.8 billion (US$ 1.84 billion). The property is located in Shanghai’s core Central Business District.
Development Details
[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]
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