Published on 28/12/2022
Global sovereign wealth funds slowed direct investment in the real estate sector in 2022 compared to 2021. Interestingly, Singapore’s GIC Private Limited went on a buying spree of listed real estate investment trusts (REITs). This top 10 excludes platform and fund investments in the real estate sector. For example, these direct agreements leave out joint ventures such as the Abu Dhabi Investment Authority (ADIA) which partners with Landmark Properties for US student housing or ADIA’s JV with Rockpoint Group, LLC on US industrial properties. In addition, SWFI staff attempted to vet other buyers in certain transactions to gain SWF’s true exposure on each direct real estate sector transaction.
Direct investments by sovereign wealth funds in the real estate sector
| Rank | NAME | BUYER ENTITY | SELLER ENTITY | AMOUNT (USD) | CLOSE AT |
|---|---|---|---|---|---|
| 1 | Capital Corporation STORE | Limited Private GIC | $7,000,000,000 | 09/15/2022 | |
| 2 | Summit Industrial Income REIT | GIC Private Limited, (Dream Industrial REIT) | $4,383,228,000 | 11/07/2022 | |
| 3 | student perch | Limited Private GIC | Brookfield Asset Management | $2,083,009,500 | 23/12/2022 |
| 4 | Sani Ikos Group | Limited Private GIC | $1,500,000,000 | 09/22/2022 | |
| 5 | Southern Cross Complex, Melbourne | GIC Private Limited, (Charter Hall Group) | Blackstone Group LP and Brookfield Asset Management | $1,499,607,900 | 04/28/2022 |
| 6 | Seibu Holdings Japan Hospitality and Leisure Business Portfolio | Limited Private GIC | Seibu Holdings | $1,300,000,000 | 02/10/2022 |
| 7 | 58 Properties, Southeast US Industrial Portfolio | Limited Private GIC | MDH Partners | $1,260,000,000 | 06/29/2022 |
| 8 | Aman Group Sarl | Public Investment Fund (Cain International) | $900,000,000 | 08/15/2022 | |
| 9 | Paddington Central Assets | Limited Private GIC | British land | $890,457,520 | 04/25/2022 |
| ten | 7 Apartments, Copenhagen and Aarhus | Limited Private GIC | NREP AB | $748,321,000 | 06/01/2022 |
Source: Sovereign Wealth Fund Institute (SWFI.com) (SWFI Global Asset Owner Database).
GIC has made a concerted effort in direct real estate transactions targeting markets such as Japan, Australia, USA and Europe. A notable transaction to highlight is GIC’s investment in 76 assets of Seibu Holdings Inc.’s hospitality and leisure business.
Other honorable mentions include Norway Government Pension Fund Global’s purchase of a 50% stake in the Sony Center in Berlin for 677 million euros. The Sony Center is a Sony-sponsored eight-building complex located on Potsdamer Platz in Berlin, Germany, designed by Helmut Jahn. ADIA has invested in Mindspace Business Parks REIT.
