GIC, the investment arm of the government of Singapore, has increased its stake in British Land.

The UK’s second largest property company revealed yesterday that GIC had increased its stake to just above 3%, making it the company’s fourth largest shareholder behind pension fund managers ABP and Legal & General and investment manager Capital Group.

Big players

GIC now owns more than15m shares with a value of more than £133m.

British Land shares closed up 1p at 874p, while the EPRA index of all European property shares fell 0.17%.

Sovereign wealth funds have become the most important investors in world financial markets, taking advantage of the liquidity problems plaguing investment banks. GIC will own a 9% stake in Swiss bank UBS at an interest rate of nearly 10%.

Many in the property industry have been hoping that these cash rich funds will become more active in the property market now that prices have fallen.