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Newsmakers

PE and Infrastructure Spur Growth of Caisse de Depot in H1

Caisse says it was able to beat the average loss of Canadian pensions for the first half of 2010 by focusing on fixed income and alternative assets, while reducing holdings of stocks.

(August 20, 2010) — Boosted by investments in private equity and infrastructure, Canada’s biggest pension-fund manager, the Caisse de Depot et Placement du Quebec, posted a return of 2.3% in the first half of this year.

The fund stated that the driving factors behind the $4.1 billion in value added included the 14.7% return of its private equity portfolio, 6.0% return of the Caisse’s fixed income portfolios, mostly from corporate and real estate debt investments, 10.1% return of its infrastructure portfolio, and a proactive underweight in equity portfolios. A July report by RBC Dexias investment-services unit shows that the Montreal-based fund manager’s results outpaced the 1.4% average loss of Canadian pensions for the first half of 2010.

The large pension fund manger said it doesn’t expect the volatility of May and June to subside quickly because of continued worries about the strength of the recovery in Europe and the US and a potential slowdown in China. “The markets were challenging and volatile in the first half of the year, with sharp declines in global stock market indicators and significant concerns about European and US economic outlooks,” said Caisse President and Chief Executive Officer Michael Sabia in a statement. “Despite this fact, the Caisse navigated this unfavorable environment well. Our results reflect the work of our asset managers during this period. We find it particularly encouraging that we could produce $4.1 billion in value added compared with the markets,” he added.

As of June 30, Caisse’s net assets under management rose 3.2% to $130.7 billion from $125.5 billion at the end of 2009.

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To contact the <em>aiCIO</em> editor of this story: Paula Vasan at <a href='mailto:pvasan@assetinternational.com'>pvasan@assetinternational.com</a>; 646-308-2742
Home > News > Newsmakers > Korean Pension Service Acquires 51% Interest in Paris Shopping Center
Newsmakers

Korean Pension Service Acquires 51% Interest in Paris Shopping Center

Mall owner Hammerson has sold more than half of its interest in the O'Parinor Shopping Centre near Paris to Korea's National Pension Service, freeing $278 million for planned investment.

(August 19, 2010) — The National Pension Service (NPS) of Korea, the fifth-largest pension fund in the world that manages nearly 300 trillion won in assets, has acquired a 51% stake, worth $278 million, in the O’Parinor Shopping Centre in Paris.

The deal is in line with NPS’ plans to boost investments in real estate, infrastructure and private equity funds to 6.4% this year, from 4.5% at November 30, 2009.

The stake was acquired from property company Hammerson, which said it planned to use the proceeds from the sale to invest in the UK and France. Under the deal, NPS will be able to purchase an additional 24% interest in Autumn 2011 from Hammerson for an estimated $136 million. Some of the funds would also be reinvested into assets such as Silverburn, in Glasgow, and future developments such as Les Terrasses du Port, in Marseille, Reuters reported.

“This transaction is in line with our strategy of investing in high quality global real estate,” Hee Seok Kim, head of global investment at NPS, said in a release. “Working alongside Rockspring, we are very pleased to be creating a new joint venture partnership with Hammerson, one of Europe’s foremost managers of retail property.” Our strategy is to improve the growth prospects of the portfolio by releasing capital from mature assets where we have created value, such as O’Parinor, reinvesting into assets such as Silverburn in Glasgow and future developments such as Les Terrasses du Port in Marseille,” added David Atkins, chief executive of Hammerson.

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As of June 30, 2010, the O’Parinor Shopping Centre, held in co-ownership with Carrefour and Redevco and acquired by Hammerson in 2002, was valued at $554 million. Net income from the property in 2009 was $28 million.



To contact the <em>aiCIO</em> editor of this story: Paula Vasan at <a href='mailto:pvasan@assetinternational.com'>pvasan@assetinternational.com</a>; 646-308-2742

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