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

Harvard endowment in hiring mode

The Harvard Management Company (HMC), which manages the assets of the Harvard Endowment, is hiring again after cutting up to a quarter of jobs earlier this year, with 18 investment, accounting and technology support jobs currently on offer, and chief executive, Jane Mendillo, citing a plan to add key investment professionals in coming months. mrec4inarticleinline

Institutions review securities lending programs

Almost half of US institutional investors are turning their back on securities lending programs, with cash collateral reinvestment losses the leading concern among three quarters of those who participated in a recent survey by Callan Associates, and for a lot of funds the next decision is what course to take in the recovery and mitigation

Feeling investment highs – before seeing snakes and spiders

Neuroeconomics provides a scientific explanation of why the vast majority of investors fall prey to the market cycle- and can’t resist it. Simon Mumme talks to director of UBS Wealth Management Research, Joachim Klement about the limits of active investing. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

KIA to divest big stake in Kuwait telco

The $202 billion Kuwait Investment Authority (KIA) is ready to sell its 24.6 per cent stake in domestic telecommunications company Zain and is awaiting attractive offers from bidders as it seeks liquidity to finance the nation’s budget. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

CalPERS’ CEO and CIO performance on offsite agenda

The full board of administration and the executives of CalPERS are conducting a three-day offsite, entitled Defining Our Future Now, which includes a number of closed sessions regarding chief executive and chief investment officer performance and employment matters, in addition to open forums on a number of strategic investment decisions. mrec4inarticleinline Sponsored Content scnative1 scnative2

Clash of the titans: investors and managers at odds over alternatives regulation

A battle has broken out between investors and suppliers over the regulation of hedge fund and private equity managers, with opposing testimony given to the US Senate by the country’s largest pension fund, the $180.9 billion CalPERS, and a US-based venture capital firm. In this “Have Your Say” column we ask you whether you agree

Previous