China Wealth Fund Holds 74 Million General Growth Shares After Bankruptcy

sovereign wealth fund China, in a bet that the real American goods and retail spending recovers, has acquired a 7.4 per cent of General Growth Properties Inc., the U.S. owner the second largest center.

China Investment Corp. has 59,300,000 common shares and warrants to purchase an additional 14,700,000 shares, according to a Form 4 filed Tuesday with the U.S. Securities and Exchange Commission. The Future Fund Board of Guardians, a pension fund manager of the Government of Australia, holds a 6.4 percent overall growth based in Chicago, records show.

the U.S. consumer spending in China-made clothing and consumer electronics to help push the trade gap between the two countries, which rose 21 percent to 201.2 billion U.S. dollars in the first 10 months of this year. China is using FDI to capture some of the profits from sales abroad of goods that its factories churn out for companies such as Apple Inc., said Dan Rosen, director of rhodium Group, a research firm New York who specializes in China.

"In addition to the manufacture of goods, China is coming to retail," Rosen said in a telephone interview today. "The margins that the Chinese enjoy the fantastic goods and are small compared with the profit margins of the Wal-Marts of the world."

General Growth emerged from bankruptcy estate largest in U.S. history on 9 November. As part of the restructuring, he left Howard Hughes Inc., owner of the planned communities and other properties, as an independent publicly traded.

Brookfield Entities

China Investment Fund and the future of Australia to maintain its stake in General Growth through the bodies established by Brookfield Asset Management Inc., a Toronto-based company, founded by members of the Canadian Bronfman family. Brookfield and its clients invested around 2.31 billion U.S. dollars at the mall drive through bankruptcy reorganization, with an additional $ 200 million dedicated to Howard Hughes Inc.

Zwieg Hugh, an officer in overall growth, did not return a phone call seeking comment. Andrew Willis, a spokesman for Brookfield, declined to comment on the China Investment Partner with money management firm.

Investment in China, with about $ 300 billion under management, has been created to generate greater returns on foreign exchange reserves of the country. China is the world's largest holder of U.S. Treasury bonds, with 883.5 billion U.S. dollars of securities at September 30, according to the U.S. Treasury Department.

"Attractive alternative"

"High quality U.S. commercial real estate is an attractive alternative for SWFs to invest dollars," said Alex Avery, an analyst at real estate industry at CIBC World Markets Inc. in Toronto. "You get the safe haven currency, but you have to cope with low yields of Treasury bonds."

China Investment committed about U.S. $ 800 million for the property $ 4,700,000,000 Morgan Stanley announced worldwide in June, according to Private Equity Real Estate. The fund was also negotiating to buy some real estate to Harvard University for several hundred million dollars. This operation failed, a person briefed on the matter said in September.

Brookfield formed a response group $ 5,500,000,000 real estate in August 2009 to invest in commercial real estate in trouble, according to Willis. Under the terms of the agreement, members had the final say on whether the money was spent on various occasions identified by the Canadian money manager.

Wealth Funds

When a bidding war to invest in the overall growth erupted earlier this year, rival claimants sought financial support from the funds of wealth in the Middle East and Asia, the Financial Times in March. At that time, Brookfield said it might seek financing from investors in the response group, including China Investment Future Fund and Government of Singapore Investment Corp., the newspaper said.

According to documents filed, Brookfield was 230.9 million shares of overall growth, over 57.5 million warrants in return for their investment. About a quarter of the stake was assigned to sovereign wealth fund China, with 64.4 million shares and orders to go to the Board of the Fund for the Future of the Guardians, who helps oversee about 69 billion U.S. dollars pension assets to the Australian government.

Brookfield was formed by Peter and Edward Bronfman in 1954 after the two brothers cashed out its stake in Seagram Co. Ltd., a spirits company based in Montreal which was ultimately acquired by Vivendi SA in 2000 other members of the Bronfman family. Brookfield, which specializes in real estate to energy and infrastructure investments, has about $ 113 billion in assets under management, including $ 20 billion sovereign wealth and pension funds, said Willis.

General Growth rose 42 cents, or 2.9 percent, to $ 15.10 at 4:15 am in the market in New York Stock Exchange. The company issued 135 million shares earlier this week at $ 14.75 each.