Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Join the Mingtiandi Proptech Forum 2021
      • Asia Proptech 2021: COVID-19 Accelerates a Trend
      • Panel Talk: Tech Adoption in Logistics Real Estate
    • Promote Your Brand with the Mingtiandi Proptech Forum 2021
    • 2021 Mingtiandi Event Calendar
    • More Events
  • MTD TV
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Advertise

China’s CIC Said Ready to Bid for $2.4B Aussie Office Fund

2016/01/18 by Michael Cole Leave a Comment

Piccadilly Centre Sydney

Sydney’s Piccadilly Centre is among the high profile assets in the trust’s portfolio

The mainland’s biggest buyer of overseas real estate assets may be about to add another $2.4 billion to its global portfolio, as China Investment Corporation (CIC) is said to be considering buying out an Australian property fund.

CIC, which has already purchased more than $7.3 billion in properties across Asia, Europe and Australia over the last five years, is said to be pondering a bid for Australia’s A$3.5 billion ($2.4 billion) Investa Office Fund, according to a report in the Australian Financial Review.

The acquisition would come less than six months after CIC bought up the Investa Property Trust (IPT) portfolio of office assets from the Morgan Stanley subsidiary for $1.79 billion in July last year, and the two sides are said to already be drawing up documents related to this potential new transaction.

Mainland Sovereign Fund Joins Bidding for Office Trust

Telstra-Corporate-Centre

The Telstra Corporate Centre in Melbourne is also owned by the trust

Investa Office Fund includes investments in 22 properties across Australia and has total assets under management of A$3.1 billion ($2.1 billion) according to its website. Morgan Stanley announced in April that it was exiting from its Investa subsidiary, including the ASX-listed real estate investment trust (REIT).

Reports last month had Australia’s Dexus Property Group agreeing to buy the office fund, however, the trust’s existing stakeholders have said to be looking for competing bidders, as the value of Dexus’ cash and shares bid has slid along with its share price in the interval.

CIC’s interest in the deal was confirmed when the mainland fund reportedly approached local real estate firm MIRVAC, which currently manages the office fund’s assets, to see if the company would continue to manage the portfolio on behalf of the Chinese sovereign fund.

Chinese Investors Receive Extra Motivation From Currency Slide

While Chinese investment in overseas real estate has been growing rapidly over the past five years, the surprising decay in the value of China’s currency may be adding an extra sense of urgency for cross-border investors.

During the last 30 days, the Chinese yuan has lost as much as 2.37 percent of its value versus the US dollar, and investment bank Goldman Sachs is predicting that the yuan could slide another 6 percent over the next 12 months as China’s economy continues to come under pressure.

For CIC, which last year spent $1.44 billion to buy a portfolio of European malls, in addition to its Investa deal, buying now could potentially provide significant savings for the fund charged with investing part of China’s foreign exchange reserves.

Related Stories

  • Morgan Stanley Sells Australian Property Portfolio to CIC for $1.79BMorgan Stanley Sells Australian Property Portfolio to CIC for $1.79B
  • CIC Nabs Half of Sydney’s Grosvenor Place Office Tower for $674MCIC Nabs Half of Sydney’s Grosvenor Place Office Tower for $674M
  • Blackstone Bets on Aussie Offices with $2.3B Bid for Investa Office FundBlackstone Bets on Aussie Offices with $2.3B Bid for Investa Office Fund
  • CIC Aims To Boost Real Estate, Alternatives to 45% of Overseas PortfolioCIC Aims To Boost Real Estate, Alternatives to 45% of Overseas Portfolio

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Outbound Investment Tagged With: Australia, China Investment Corporation, CIC, Investa Property Group, weekly

Proptech Registration Jumbo

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Yardi Commercial Cafe

Get Mingtiandi Delivered

Proptech Registration Column

Latest Stories

John Pattar KKR

KKR Announces $1.7B Final Closing for First Dedicated Asia Real Estate Fund

Mango Halts China Store Openings and More Asia Real Estate Headlines

Blackstone Buying Disney Building in Singapore’s One North for $135M

George Agethen

Ivanhoé Cambridge, PAG Launch $400M Japan Last Mile Logistics JV

Sponsored Features

CK Lau

Asia Pacific Logistics Sector: Increasingly Varied Sector Requires Multiple Approaches Sponsored Feature

COVID-19 Uncertainty Creates New Priorities for Real Estate Investors Sponsored Feature

Urban planning

Urban Placemaking with Big Data and Little People Sponsored Feature

Hines’ One Museum Place Celebrates One Year of a New Shanghai Landmark Sponsored Feature

More Sponsored Features>>

MTD-QR-Code-320

Top Stories

Blackstone Buying Disney Building in Singapore’s One North for $135MBlackstone Buying Disney Building in Singapore's One North for $135M

CapitaLand China Retail REIT Sells Wuhan Properties and More Asia Real…CapitaLand China Retail REIT Sells Wuhan Properties and More Asia Real Estate Headlines

KKR Announces $1.7B Final Closing for First Dedicated Asia Real Estate FundKKR Announces $1.7B Final Closing for First Dedicated Asia Real Estate Fund

Ivanhoé Cambridge, PAG Launch $400M Japan Last Mile Logistics JVIvanhoé Cambridge, PAG Launch $400M Japan Last Mile Logistics JV


Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • Events
    • Join the Mingtiandi Proptech Forum 2021
      • Asia Proptech 2021: COVID-19 Accelerates a Trend
      • Panel Talk: Tech Adoption in Logistics Real Estate
    • Promote Your Brand with the Mingtiandi Proptech Forum 2021
    • 2021 Mingtiandi Event Calendar
    • More Events
  • MTD TV
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Advertise

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Newsletter Subscription
  • Terms of Use
  • Privacy
  • Advertise
  • Join the Mingtiandi Team

We use cookies in accordance with our Privacy policy to provide the best user experience on Mingtiandi and to safeguard user data. By continuing to browse you consent to the policy. AcceptRefuse