Real Estate Investments, More Attractive for Sovereign Wealth Funds

Data: Nov 2014, Sovereign Wealth Fund Transaction Database

Data: Nov 2014, Sovereign Wealth Fund Transaction Database

Sovereign wealth funds are plugging more money into direct real estate, even in development deals. The thirst for core properties, value-add real estate and logistics are drawing sovereign wealth funds to spend more.

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.



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