Weekly Digest: AustralianSuper makes first bet on US data centres; HK keen to boost infra investments by insurers
TOP NEWS OF THE WEEK
AustralianSuper made its first foray into the US data centre market by leading a $2 billion equity raise for DataBank.
Australia's largest superannuation fund committed $1.5 billion, securing a position as a significant minority owner and a seat on DataBank's board of directors.
This is also its second collaboration with DigitalBridge, an existing DataBank investor.
The strategic investment bolsters AustralianSuper's global real assets portfolio, which is now approaching $40 billion and includes digital infrastructure assets across Australia, Europe, Middle East and Africa, and South America.
DataBank's successful equity raise, which was oversubscribed, will fund growth across its extensive network of data centres and support the development of new high-capacity campuses.
Source: DataBank
The Insurance Authority will initiate a review next year to examine capital requirements for infrastructure investment, enriching insurance companies' asset allocation for risk diversification and driving investment in infrastructure such as the Northern Metropolis.
The government will also continue to invite mainland Chinese and overseas enterprises, including large state-owned enterprises in mainland China, to establish captive insurers in Hong Kong, according to Chief Executive John Lee’s latest Policy Address announced on Oct 16.
Source: HKSAR Government
Japanese insurer Tokio Marine has paused the sale of its $1 billion Southeast Asia life insurance business, partly due to a dispute with a Malaysian partner over an expiring products distribution agreement, four sources with knowledge of the matter said.
The Tokyo-listed company hired Goldman Sachs and Jefferies last year to work on the sale that includes Tokio Marine's life insurance businesses in Indonesia, Malaysia, Singapore and Thailand, Reuters reported in June 2023.
However, Tokio Marine last month filed a lawsuit against RHB in Malaysia, seeking to enforce its right of first refusal over a 10-year product distribution agreement that is due to expire by year-end, a filing by RHB at that time showed.
Source: Reuters
OTHER INVESTMENT NEWS
CHINA
China has approved separate insurance units to be set up by BNP Paribas and Prudential Financial, a regulator said, as it looks to further open up the world's second-largest insurance market to foreign companies.
China's National Financial Regulatory Administration (NFRA) has approved the creation of a joint venture between BNP and Volkswagen Financial Services, Li Yunze, head of the regulator said at a financial forum in Beijing.
US-based Prudential Financial has also been approved to set up an insurance asset management firm in Beijing.
Source: Reuters
EWPartners, an investment firm backed by Saudi Arabia’s sovereign wealth fund, is planning to develop a so-called special economic zone inside the country to boost Chinese trade with the oil-rich kingdom.
The KSA-Sino Logistics Zone will be developed at Saudi Arabia’s new King Salman International Airport, Cliff Chau, managing partner at Riyadh-based EWPartners, said.
It will aim to bring in Chinese firms involved in logistics, light manufacturing and reexports into Saudi Arabia to serve the wider Middle East, Africa and Europe, he said.
Source: Bloomberg
AXA China Region Insurance Company changed the official name of XL Reinsurance (China) Company to AXA International Reinsurance (Shanghai) Company (AXA International Re), effective October 16.
This milestone marks a pivotal moment in its commitment to expanding and enhancing reinsurance operations in mainland China, the company said in a statement.
Source: AXA
HONG KONG
The Hong Kong SAR Government expanded its new Capital Investment Entrant Scheme to allow investment in residential properties with a transaction price of no less than HK$50 million ($6.4 million).
The amount of real estate investment will be counted towards the total capital investment capped at HK$10 million, effective immediately.
To attract single family offices, the government also plans to expand the scope of tax concessions.
It will consult the industry on the proposal to add qualifying transactions eligible for tax concessions for funds and single-family offices, according to Chief Executive John Lee’s latest Policy Address announced on Oct 16.
Source: HKSAR Government
INDIA
Singaporean state-owned investor Temasek has invested an additional $60 million in upGrad, an Indian startup focused on higher education and upskilling.
This acquisition maintains upGrad’s valuation at $2.25 billion, according to sources.
The recent investments are part of Upgrad’s US$80 million funding round, which includes the secondary transaction involving Indian conglomerate Bharti Enterprises. Key investors in the company include Temasek and the International Finance Corporation (IFC).
Source: Tech in Asia
KOREA
Korea Post has opened a tender for a 200 billion won ($145 million) mandate structured as a blind fund that will focus on financing for domestic acquisitions.
The government postal agency is looking to hire two asset managers to manage the investment, which is for its insurance unit.
Source: Asia Asset Management
Koramco Asset Management will open a liaison office next to the National Pension Service (NPS) to bolster cooperation with the world’s third-largest pension fund, which is increasing its investment in real estate.
The Seoul-based asset manager, which focuses on real estate and infrastructure, plans to launch a liaison office a five-minute walk from NPS Investment Management’s headquarters in Jeonju, 240 kilometres south of Seoul, according to banking industry sources.
Source: Korea Economic Daily
INTERNATIONAL
Canada Pension Plan Investment Board, EQT and Neuberger Berman Private Markets, together with global institutional investors, signed a share purchase agreements in Nord Anglia Education for an enterprise value of $14.5 billion.
Existing owners EQT and CPP Investments will remain shareholders in the Company through a new fund investment and reinvestment, respectively.
Nord Anglia is a leading international schools organisation, operating over 80 schools in 33 countries. It operates in several Asian countries.
Nord Anglia was CPP Investments' first direct equity investment in the private education sector.
Source: Joint press release
The above briefs were curated from company news releases and third-party sources.