Allstate Investments could deploy up to $150 million of equity to Asia-Pacific-focused fund managers as it looks to globalise its $2 billion property portfolio.
The real estate equity investment arm of the US insurance group is considering the move after making its first wave of international commitments to three Brazil GPs targeting the residential and logistics sectors. Allstate allocated a total of $75 million to three fund managers after reviewing 12 GPs operating in the country, including nine US-platforms.
Now the pension wants to take its Brazil template – developed over the past two and a half years – to the Asia-Pacific region, with India a possible focus.
Allstate’s head of real estate equity Edgar Alvarado said in an interview in the March issue of PERE magazine it was looking to target total commitments of between $125 million to $150 million to Asia-Pacific strategies.
Explaining how his real estate fund team, led by Joy Winterfield, analysed the macro-economic, property sector and fund manager risks involved in Brazilian investing, Alvarado said that particular process was intended to be a “test case” that could be replicated for other countries as the pension looks to create a global portfolio.
“We made the decision to start investing in Brazil in late 2009 but we wanted to ensure that whatever process we developed for this allocation could be replicated for other countries,” he said.
To read more see the March issue of PERE magazine.