Weekly Digest: Mubadala invests in Japan property; GIC shows interest in Philippines SWF
TOP NEWS OF THE WEEK
Abu Dhabi sovereign wealth fund Mubadala Investment, Proprium Capital Partners and Manulife Investment Management has set up a joint venture, which will partner with Samurai Capital to invest ¥80 billion ($574 million) in multifamily real estate in Japan.
The joint venture was initially seeded with existing rental multifamily real estate in Japan and will seek to acquire additional high-quality real estate in urban areas with good access to railway stations and amenities.
The investments are to deliver attractive and sustainable returns for shareholders through reducing the carbon footprint of the buildings, a news release said.
"Japan's multifamily property sector has proven to be resilient and stable, offering attractive risk-adjusted returns with significant future growth potential," Matthias Neuling, head of Asia and DACH real estate for Mubadala, said in the release.
Source: Mubadala
President Ferdinand Marcos Jr's economic team is optimistic after meeting Singapore's sovereign wealth and state investment fund giants to rally support for the Maharlika Investment Fund (MIF)
“Meetings with Temasek and GIC were insightful and productive,” National Treasurer Rosalia V. De Leon said. “We will continue to update them on Maharlika’s progress, like the IRR [implementing rules and regulations].”.
MIF is expected to serve as an additional source of funding for the Marcos administration's 194 infrastructure flagship projects that require a total investment of $165 billion.
Source: Manila Bulletin
OTHER INVESTMENT NEWS
AUSTRALIA
Australian industry super fund, Hostplus is closing its infrastructure and property investment options, redirecting around $225 million (A$300 million) to balanced options.
The move is part of the fund's strategy to offer a more comprehensive suite of investment options. Hostplus is introducing six new investment options, including two indexed options.
The property option returned 3.83% in the year to May end, while the infrastructure option returned 8.94% for the 12 months to May 31.
Hostplus will continue to invest in unlisted property and infrastructure assets by blending them into its other pre-mixed options.
The closure of the property and infrastructure options will take effect on October 1.
Source: AFR; Financial Standard
CHINA
Chinese President Xi Jinping met with Bill Gates, co-chair of the Bill & Melinda Gates Foundation, in Beijing.
Xi applauded Gates and the Gates Foundation for their long-term work to promote poverty reduction, health, development and philanthropy around the world.
"You're the first American friend I've met in Beijing this year," Xi told Gates, noting that people should travel and communicate more to increase their understanding as the world emerges from the Covid-19 pandemic.
The Gates Foundation is committed to strengthening cooperation with China in the fields of innovation, global poverty reduction, public health, research and development of drugs, rural areas and agriculture, and spreading successful practices and technologies to other developing countries, Gates said.
Source: Xinhua
Hang Seng Qianhai Fund Management, a joint venture between Hang Seng Bank and local authorities in Shenzhen Qianhai, plans to launch a range of new investment products to take advantage of cross-border opportunities in China, particularly in the Greater Bay Area.
According to Liu Yu, general manager of Hang Seng Qianhai, the joint venture will introduce two funds focused on fixed-income investments in mainland China.
The two funds collectively are expected to have a combined scale of over 600 million yuan ($84.3 million).
One fund will focus solely on bonds, while the other will have a combination of bonds, stocks, and other liquid bonds.
Source: South China Morning Post
Schroder Fund Management (China) Company has been granted the public fund business license by the China Securities Regulatory Commission (CSRC) to begin operations as a wholly foreign-owned public fund management company in mainland China, the company announced on June 8.
Schroders Fund Management plans to offer onshore investment products and solutions to retail clients, alongside asset management services to institutional clients.
Source: Schroders
HONG KONG
Tsangs Group signed a memorandum of understanding with the Ministry of Investment of the Kingdom of Saudi Arabia, the single family office announced on Monday.
The MoU was signed on June 11 at the 10th Arab-China Business Conference, aiming to facilitate the cultural collaboration and expansion of the business in Saudi Arabia.
Source: Tsangs Group
INDIA
Zurich Insurance Group is in talks to buy up to 51% of India's Kotak General Insurance, two sources with direct knowledge of the matter said, a deal that would mark its first major bet on the fast-growing South Asian insurance market.
Backed by Asia's richest banker Uday Kotak, the early-stage negotiations value the Indian company at around $800 million, and Zurich Insurance has expressed interest in both a minority stake of 49% or taking up a majority 51% stake, the sources said.
The stake the Swiss insurer wants to secure will be worth around $400 million, they said.
Kotak is still evaluating offers, including from other investors, but it prefers retaining "control of the company" after the stake sale, the first source said.
Source: Reuters
The Pension Fund Regulatory and Development Authority (PFRDA) plans to launch a systematic withdrawal plan that will allow pension subscribers to withdraw their funds as a lumpsum of their choice when they turn 60.
"It is at a very advanced stage. Hopefully, by the end of next quarter we should be able to come out with a scheme like that,” PFRDA chairman Deepak Mohanty told PTI in an interview.
Currently, subscribers to the National Pension Scheme can withdraw up to 60% of their retirement funds as a lumpsum once they turn 60 years of age.
The balance 40% of the fund must be compulsorily used as an annuity.
Source: PTI
Abu Dhabi sovereign wealth fund Mubadala Investment announced a partnership between its investee companies, Princeton Digital Group (PDG) and Tata Power Renewable Energy Limit for the supply of clean electricity to one of PDG’s flagship data centers in India.
Under the terms of the agreement, PDG, a Pan-Asia data center operator, and Tata Power Renewables, an Indian power company, co-invested in a captive power plant that will supply electricity to PDG’s data center in Airoli, Mumbai, under a 25-year renewable power consumption agreement (PCA).
First power from the solar plant, located in the Nanded district in the state of Maharashtra, will be generated this month, with additional capacity to come online following the completion of future phases of the solar plant.
Source: Mubadala
JAPAN
Finnish pension fund Ilmarinen continues its run of seed funding sustainable products with a combined $2.9bn anchor investment in new BlackRock climate ETFs capturing US and Japanese equities.
The Helsinki-based institutional investor provided an $800m seed for the iShares MSCI Japan Climate Action ETF which is listed on the Tokyo Stock Exchange.
Ilmarinen contributed to the development of the MSCI climate action indices underlying the two strategies, which select the top half of companies in each sector based on climate considerations including current emissions intensity, emissions reduction targets, green business revenue and climate risk management.
The pension fund intends to increase the climate emphasis of its ETF investments, with over 85% of its passive equity portfolio currently in climate-focused strategies.
Source: Ilmarinen
Teachers’ Retirement System of the State of Illinois (TRS Illinois) has approved $215m worth of commitments to two real estate vehicles managed by Fortress Group.
The pension fund said it has placed $115m into Fortress Japan Opportunity Fund V and made a $100m commitment to the Fortress Real Estate Opportunities Fund IV fund.
Japan Opportunity Fund V is expected to invest in real estate assets and real estate operating companies that are based in Japan.
Source: TRS Illinois
KOREA
The Government Employees Pension Service (GEPS) selected Apollo Global Management, Warburg Pincus and Sweden-based EQT Partners as its first managers for global buyout and growth equity portfolios early this week, according to sources with knowledge of the matter.
The three firms will receive a combined $120 million in commitment, or $40 million each. Apollo will focus on buyout deals in North America, while Warburg Pincus will target pre-IPO companies with a high growth potential in North America. EQT will focus on buyouts in Europe.
It marked the first time that GEPS is deploying capital to global buyout and growth equity funds since its inception in 1982.
Source: Korea Economic Daily
Public Officials Benefit Association (POBA) will invest more than W133 billion ($103.8 million) in American commercial properties in collaboration with Shinhan Financial Group.
Under the investment, they will seek stable returns with more than 6% of an annual internal rate of return (IRR) while holding a portfolio of lower-risk commercial mortgage-backed securities of 50% of loan-to-value (LTV).
According to sources, the Korean public pension and Shinhan Financial Group unveiled a new fund product Shinhan Principal CMBS.
The fund aims to make indirect investments in the international CMBS products managed under Principal Asset Management.
Source: Maeil Business News
TAIWAN
Fubon Life Insurance, the insurance unit of Taiwanese financial conglomerate Fubon Financial Holdings, has committed to invest $50 million in the latest special situations fund of KPS Capital Partners.
In a disclosure to the Taiwan Stock Exchange, Fubon Financial said its insurance unit will take around 0.6% stake in KPS Special Situations Fund VI (A), a private equity fund managed by turnaround specialist KPS Capital Partners.
Source: DealStreetAsia
REST OF THE WORLD
The Ontario Teachers' Pension Plan and its real estate subsidiary Cadillac Fairview (CF) are changing their real estate operating model to accelerate growth and diversification of investments.
As Ontario Teachers’ works towards its goal of reaching C$300 billion in net assets by 2030, it will be establishing an in-house real estate asset class group to oversee real estate investment activities.
The pension fund said this aligns with its investment approach to other asset groups within Ontario Teachers’, where investment capabilities are embedded to enable information sharing, co-sourcing, and best practices across its global platform.
In support of this model, Ontario Teachers' will establish an in-house real estate asset class group to oversee investment activities, while Cadillac Fairview will focus on growth and densification of its real estate portfolio in Canada.
The transition will take place on January 1, 2024, and both companies will work together to ensure a smooth transition.
Ontario Teachers’ is also currently conducting a search for a global head of real estate.
Source: Ontario Teachers’