London's Bluefin Building, that Temasek Holdings purchased with
investors have been busy this week with investments in consumer
services, financials and technology, among others. Investing in
infrastructure, however, can be challenging at times: Witness
ADIA and CPPIB’s plans to appeal a gas-tariff
ruling in Norway; meanwhile, Malaysia’s Khazanah
Nasional failed in its attempt to buy Spain’s
of investment activity from Asian sovereign funds has made
headlines over the past five days, with the funds plowing
capital into all their favorite sectors, including real estate
and consumer goods and services. Singapore’s
Temasek Holdings announced another deal with Oxford Properties,
the real estate investment arm of the Ontario Municipal
Employees Retirement System.
investors are purchasing the Blue Fin building on London's
South Bank from the U.K. division of American magazine
publisher Time Inc. for £415 million ($580 million).
Temasek and Oxford already share ownership of another office
property in the capital, MidCity Place, which they bought for
more than £350 million in September 2014.
Singaporean holding company also announced its decision to back
the new £3.3 billion ($5.1 billion) rights issue of
London-based emerging markets bank Standard Chartered. Temasek,
which is the bank’s largest shareholder, is
planning to exercise its rights to prevent dilution of its 15.8
percent stake. The loss-making bank is shoring up its capital
after it recorded a 12 percent drop in revenue, to $3.7 billion
over the last year.
other Singaporean sovereign fund, GIC, announced a HK$659
million ($85 million) investment this week in Chinese surgical
cosmetics producer Bloomage BioTechnology Corp. GIC is
committing HK$465 million in convertible bonds and taking up
HK$194 million new shares at a subscription price of HK$12 per
share Bloomage anticipates robust growth potential in the years
ahead as it exploits the two secular trends in China: an aging
population and a growing middle class.
Investment Corp. (CIC) continues to help Chinese companies in
the so-called "Go Out" policy set by the government to
encourage Chinese companies to invest and expand abroad. CIC
has reportedly signed an equity check of $150 million for a
stake in the food and beverage manufacturer Dali Foods.
CIC’s special-purpose vehicle, JIC Dessert
Laboratory, is the largest cornerstone investor in the initial
public offering of the Hui’an, China-based snack
producer, which aims to raise up to $1.34 billion to fuel its
growth at home and overseas.
can be tricky
Khazanah Nasional failed at its first attempt in infrastructure
investing in Europe as Dutch manager PGGM, Canadian pension
fund OPTrust, and London-based Universities Superannuation
Scheme Investment Management (USS) completed the acquisition of
Spanish infrastructure firm Globalvia, a 50-50 joint venture
between Barcelona-based infrastructure manager FCC and
Valencia-based financial services group Bankia. Khazanah saw
its €420 million ($466 million) offer to purchase a stake
in Globalvia rejected in July by the company’s
creditors. PGGM, OPTrust and USS preferred to exercise the
option to match Khazanah’s offer to retain
ownership of the Spanish company.
institutional investors are struggling with some European
governments in the management of their infrastructure assets.
The Abu Dhabi Investment Authority, Munich-based alternative
investment manager Allianz Capital Partners and the Canada
Pension Plan Investment Board have decided to appeal a court
ruling that upheld the Norwegian government's decision to slash
tariffs on a gas pipeline in which they invested in 2012. The
group had sued the Norwegian government over its 2013 decision
to reduce tariffs by up to 90 percent for transporting natural
gas on the Gassled network that connects North Sea oil and gas
fields to terminals across Europe.