News & Analysis

LP Radar – March 2015

See the latest PERE LP updates, including allocation changes and people moves.

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31 March

The New Jersey Division of Investment has recruited a new head of real estate, Kevin Higgins. It also increases its target allocation of real estate to six percentage for 2016.

 

 30 March 

The State of Wisconsin Investment Board and Virginia Retirement System have committed $100m and $110m respectively to the Blackstone Highline Property Co-Investment Partners.

 

 27 March 

Sumitomo Mitsui Banking Corporation revealed that 90% of its real estate investments are in Japan and it plans to increase the exposure in Europe and the US.

Ohio Police & Fire Pension Fund committed $50 million to the Gerrity Retail Fund II.

 

26 March 

Kansas Public Employees Retirement System has made an additional commitment of up to $50 million to J.P. Morgan Strategic Property Fund. It committed $125 million to the fund in 2013.

At yesterday’s investment meeting, Rhode Island State Treasury approved a $30 million allocation to the Lone Star Real Estate Fund IV.

The New Jersey Division of Investment committed $100 million to the KSL Capital Partners IV fund.

 

25 March 

Derbyshire County Council Pension Fund plans to increase its allocation to indirect property investment to 7 percent.

In March the Colorado PERA Board of Trustees approved a new asset allocation to real estate, which will be implemented as of 1 July 2015. CoPERA have an interim target of 7.5 percent and a long term target of 8.5 percent.

The Stanford Management Company appointed Robert Wallace as the new Chief Executive Officer of the endowment.

 

24 March 

Texas Employees Retirement System committed $50 million to Waterton Residential Property Venture XII

 

23 March 

Kentucky Teachers’ Retirement System committed $50 million and $10 million to Blackstone Real Estate Partners VIII and Rockwood Capital Real Estate Partners respectively. 

 

20 March 

Employees' Retirement System of the State of Hawaii committed $20 million to CBRE Strategic Partners U.S. Value 7.

Brian White, the chief executive officer of the San Diego County Employees' Retirement Association,  will step down from his position effective 30 March.

 

19 March

Stichting Pensioenfonds SABIC has committed €25 million to ASR Real Estate Investment Management's Core Residential Fund.

In January, the Employees Retirement System of Texas approved a $100 million commitment to RockPoint Real Estate Fund V.

The California Public Employee's Retirement System committed an additional $75 million to its Canyon Catalyst Fund joint venture. The System made its first commitment of $200 million to the partnership in 2012.

 

18 March

Korea Investment Corporation and Investment Corporation of Dubai signed a memorandum of understanding to plan establishing a joint investment committee and seek co-investment opportunities in real estate market in the future.

The Dallas Police and Fire Pension System hired Kelly Gottschalk as the new executive director for the System. She replaces Donald Rohan who served as interim administrator since June 2014.

 

17 March

Maine Public Employees Retirement System has committed $50 million to Prudential Real Estate Investors' Senior Housing Partners V.

Earlier this month, Pennsylvania Public School Employees' Retirement System approved a $300 million commitment to Blackstone Real Estate Fund VIII.

The Indiana Public Retirement System  committed $75 million to the Harrison Street Real Estate Partners V.

 

16 March

National Pension Service of Korea's global head of real estate, Andie Kang, has left and it is looking for a replacement. NPS will open the first branch office in Singapore by July in 2015.

In January, the Municipal Fire & Police Retirement System of Iowa committed $50 million to Contrarian Distressed Real Estate Fund III. 

The State Universities Retirement System of Illinois appointed W. Bryan Lewis as executive director, effective 6 April. He replaces William E. Mabe, who will retire on 31 March.

13 March

South Korea's Public Officials Benefit Association revealed it has allocated 30 percent to real estate. As an active direct investor, it will also consider private real estate funds.

4IP Management revealed to PEI that although it has not invested over the last 12 months, there is still and appetite for office, retail, industrial and logistics sectors in Western Europe, the US and Asia-Pacific, with a strong focus on the former. 4IP are most interested in core, core plus and value added opportunities, however the firm has also invested in two secondaries funds.

The Teachers' Retirement System of Louisiana expects to commit up to $50 million to the Blackstone Real Estate Partners VIII.

 

12 March

Taiwan's Bureau of Labor Funds announced its intention to commit alternatives mandates worth $2.4 billion to four real estate securities, acting on a plan to double current alternatives exposure by the end of 2015.

The Connecticut Retirement Plans and Trust Fund committed $140 million to two real estate funds: $100 million to the Blackstone Real Estate Partners VIII and $40 million to Landmark Real Estate Fund VII.

 

11 March

Florida State Board of Administration is searching for a senior portfolio manager of externally managed real estate portfolios. Jeff Smith was moved to a newly created portfolio management position in externally managed real estate as a result of an increase of the real estate allocation to 10% from 7% and a global emphasis adopted in 2014.

The Texas Municipal Retirement System plans to commit $600 million in new real estate commitments for 2015. It will consider investments in core, value-add and opportunistic strategies.

 

 10 March

Shin Kong Life Insurance revealed that it plans to invest in four private funds in 2015 and is open to opportunistic funds.

A conversation with Manners Chuma, portfolio manager at PTA Bank, revealed there are no plans to continue investing in private real estate funds. PTA Bank is a limited partner investor in the Pan African Housing Fund which will invest up to 35 percent of its total in any one of the six geographies it is targeting- Kenya, Rwanda, Zambia, Tanzania, Uganda and Mozambique.

The Oregon Public Employees' Retirement System committed $300 million to the Lone Star Real Estate Fund IV after lifting its prior restriction that limits commitments of more than $250 million.

 

9 March

Beijing Homyear Real Estate revealed that it mainly invests in real estate directly unless there are interesting co-investment opportunities in Beijing residential assets provided by PERE funds.

Meeting materials for the Public Employees' Retirement Association of New Mexico reveal that the investment committee will decide at tomorrow's meeting whether to approve up to $60 Million to KSL Capital Partners IV, an opportunistic real estate fund. 

The  Cook County Employees' & Officers' Annuity & Benefit Funds  committed $80 million to three private real estate funds: $30 million each to the Blackstone Real Estate Partners VIII and the Mesirow Financial Real Estate Value fund II and $20 million to the AG Core Plus Realty Fund IV.

  

6 March 

The Yale University endowment has reduced its real estate target allocation to 17% from 19%. The endowment has cut down its real estate assets for the third year in a row.

The Harvard Management Company put approximately $1 billion worth of real estate fund interest up for sale in favor of more direct investments and wind down its legacy portfolio. 

 

5 March 

Resona Bank revealed that it plans to invest opportunistically in new domestic funds including core, value-added and opportunity funds in 2015. Healthcare is a new sector in its investment appetite.

The Texas County and District Retirement System committed $40 million to the Related Real Estate Fund II.

 

4 March 

Samsung Fire & Marine Insurance told PEI that it has an allocation of ten percent to real estate and will continue to seek opportunities in domestic market and overseas markets primarily in Western Europe. 

The City of Newport issued an RFP for core-plus/value-added real estate manager to run $7 million for the pension fund. Dahab Associates is assisting with the search.

Andie Kang, the Global Head of Real Estate for the National Pension Reserve of Korea is expected to leave in April. No replacement has been named for his position yet.

 

3 March 

The Employees Provident Fund of Malaysia appointed Diamond Realty Management as an asset manager and program advisor for its Japan core-plus logistics investments. The non-discretionary mandate will be between $350 million and $380 million.

The Illinois Municipal Retirement Fund revealed to PERE that it committed a total of $170 million to three real estate funds at its board meeting last week. The approved commitments include $100 million to Blackstone Real Estate fund VIII, $35 million to Almanac Realty Securities VII and $35 million to Torchlight Debt Opportunity Fund V.

The Arizona State Retirement System announced plans to invest $1.2 billion in real estate this year. Of that amount, $550 million to $750 million will go to new managers, $100 million to $200 million to closed-end funds and $100 million to $300 million to existing separate account managers.

 

2 March

Liberty Mutual Insurance Company revealed to PERE that it made a commitment to Praedium VIII Multifamily Value Fund in January. The commitment amount was not disclosed. The insurance company has an appetite for investing globally in value added and opportunistic real estate funds, with a bite-size of between $25-40 million per fund. 

Hamden Employees' Retirement Plan issued an RFP for a core or core plus real estate manager to run $16 million for the pension fund. Dahab Associates is assisting with the search. 

The California State Teachers' Retirement System revealed that in Q4 2014, it committed over $1.3 billion to real estate investments with a $150 million commitment to both the Beacon Capital Strategic Partners VII and the Crossharbor Institutional Partners 2014 fund.

 

To view last month's LP Radar, click here.