Big Canadian, Australian funds go shopping

The Canada Pension Plan Investment Board (CPPIB) and Australia’s Future Fund have banded together to buy out the majority of investors in a direct property fund.The big institutions bought $673 million in property assets from 10 of the 12 existing investors in an unlisted property fund run by Colonial First State Global Asset Management (CFS GAM), turning the fund into a retail property-focused investment vehicle called the CFS GAM Property Retail Partnership.

The buy-out of existing investors, described in an announcement as a “recapitalisation and restructure”, will see CFS GAM remain as the manager of the fund.

The partnership currently manages $1 billion of investments in regional and sub-regional shopping centres in Australia, and provides the opportunity for other major institutional investors to join in a ‘clubbing’ arrangement.

Darren Steinberg, head of property at CFS GAM, said the diversified portfolio would have less than 20 per cent gearing, and that parent company Colonial First State, a large Australian financial services provider, would not invest in the partnership but would be paid management fees.

At March 31, the Future Fund invested 4 per cent of its $61 billion (excluding Telstra shares) in property. Among its publicised deals is its 50 per cent stake in the $426 million Lakeside Joondalup Shopping City in Perth, acquired through a joint-venture with Australian manager Lend Lease.

The $122 billion CPPIB has an active interest in Australian property, being an 80 per cent shareholder in the $359 million unlisted Goodman Australian Development Fund. Last year, it and the Ontario Teachers Pension Plan unsuccessfully attempted to take over toll road operator Transurban. Each has a 14 per cent stake in the business.

Sponsored Content

Leave a Comment

Sort content by

Environmental engagement through benchmarking

Engaging real estate fund managers on their carbon footprint will be more easily implemented following the creation of a Global Real Estate Sustainability Benchmark, the result of collaborative work by a group of 11 of the world’s largest pension asset managers and Maastricht University.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

NEST-eggs incubated ethically through sharia mandate

The UK’s National Employment Savings Trust (NEST) has awarded F&C Asset Management and HSBC Global Asset Management the management of its ethical and sharia mandates.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Most managers set to look outside the US

The managers most in demand by US investors are those with compelling presences in global and emerging markets’ equities, hedge funds, funds of hedge funds, private equity and real assets.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Long-term risks and the human factor for fiduciaries

While risk for investment portfolios has been well-studied in the light of the financial crisis – if insufficiently before – the notion of long-term risk is still underexplored, according to Roger Urwin.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Restrict rebalancing to US stocks and bonds: Morgan Stanley

A more efficient way to rebalance highly diversified multi-asset portfolios – which contain illiquid assets – could be to restrict the rebalancing to exchanges between US stocks and US bonds only, according to new analysis by Morgan Stanley.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Deepwater execs strike oil with safety bonuses

As incongruous as it sounds, executives at Transocean Ltd – the company that owns the Deepwater Horizon oil rig which exploded in the Gulf of Mexico last year killing 11 people – have been paid bonuses for their improved safety performance.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Previous