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UAE sovereign wealth fund to invest with Singapore's GIC in Time Warner headquarters- source

January 15
12:02 AM 2014

A source told Bloomberg that the sovereign wealth fund of Abu Dhabi will be investing in the New York headquarters of Time Warner Inc together with GIC Pte, Singapore's state fund. The Abu Dhabi Investment Authority is one of the largest sovereign wealth funds in the world.

The person spoke on the condition of anonymity since the transaction is confidential and did not specify the share that the Abu Dhabi fund will take or the amount it will pay for the transaction. In November, sources told Bloomberg News that Related Cos was already in final talks to purchase Time Warner's space measuring 1.1 million square feet for a price tag of $1.3 billion. The sources said the lead developer of Time Warner Center intended to bring GIC and other partners for the deal.

The report said state funds are making a bid to diversify their investments by increasing their alternative asset allocations. These alternative investments include infrastructure, real estate and private equity.

CIMB Group Holdings Bhd Economist Song Seng Wun told Bloomberg. "The sovereign wealth funds have deep, deep pockets. Partnerships make sense rather than competing with each other. It's the practical reality of investment opportunities that are sizeable."

The Time Warner Center website said the 2.8 million square foot property is found in the Columbus Circle in Manhattan. The twin-tower development features the Mandarin Oriental hotel, offices and restaurants. Opened in 2004, the building lures over 16 million visitors annually.

According to a report from The Wall Street Journal which also cited people knowledgeable about the talks, the Abu Dhabi and Singapore funds will fund over 80% of the acquisition.

Citing figures from the website of the Sovereign Wealth Fund Institute, the report said the Abu Dhabi Investment Authority is the third largest sovereign wealth fund holding assets of $627 billion while GIC ranks eighth with $285 billion in assets.

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