Investors

Investor sentiment is on the decline as the region suffers from a decline in petro dollar surpluses coupled with the wider global economic turmoil.

Fresh from raising nearly €1bn for its eighth mid-cap fund, the French private equity firm is aligning itself to take advantage of market dislocation. It is also raising its third small-cap fund.

It’s yet another sign that the balance of power has shifted to LPs from GPs – at least one new US fund is being structured whereby the capital commitment of the GP is subordinated to that of the LP.

The Bridgeport, Connecticut-based People's United Bank has agreed a $35 million, three-year refinancing with opportunistic investor Talcott Realty. The loan is backed by the office property One Financial Plaza in Hartford.

An undisclosed shareholder at Indian real estate fund Trikona Trinity Capital has asked the fund to sell its assets “in the best interests of the company and the shareholders”, according to a filing on the UK’s AIM stock market.

Bill Hughes, the newly-installed chairman of the UK’s Association of Real Estate Funds and head of property at British insurer Legal & General, tells PERE this month that one of his focal points is examining the structure of open-ended vehicles following mass redemptions across Europe.

The New York State Common Retirement Fund committed $300m to a fund managed by Franklin Templeton Real Estate. It came as the state’s comptroller called for more flexibility in potentially increasing alternative investments.

Despite posting a loss of $5.46 billion for 2008, the Finnish pension fund sees real estate outperform its other investment sectors.

Canada’s Caisse de depot et placement du Quebec suffered large falls in its real estate returns in 2008, with declines of 21.9%, the largest in its history. The pension fund is now seeking ways to stem future losses.

The New York private equity real estate firm discontinued its legal claim to buy the freehold of the central London residential complex owing to falling property prices. Sources told PERE the firm may launch another bid when conditions are “more favourable”.