Denmark LP commits $145m to two US funds

Denmark’s ATP Real Estate has selected two funds as part of its programme to invest €700m in unlisted real estate, joint ventures and club deals, including a first commitment to a Morgan Stanley real estate fund.

ATP Real Estate, the Copenhagen-based property asset manager, which invests on behalf of the ATP Livslang Pension and Supplerende Pension (SUPP), has made $145 million worth of commitments to two US property funds.

ATP said it had made an $80 million commitment to the Morgan Stanley Prime Property Fund. The vehicle is an existing open-ended vehicle pursuing diversified investments in “stable income producing real estate assets” across property sectors in the US. This is the first time ATP has invested in a Morgan Stanley fund.

The second commitment is a $65 million investment to the UBS Trumbull Property Fund, which is also an existing open ended fund with a “low-risk profile seeking a diversified exposure” to real estate assets across property sectors in the US. The investment is ATP Real Estate's second investment with UBS, the institutional investor added.

ATP is making its investments in unlisted real estate via a purpose-built vehicle, ATP Real Estate Partners II K/S.

In an interview with PERE in February, Michael Nielsen, managing director of real estate at ATP, said he expected to build a portfolio of between 12 and 15 fund investments for the new programme. He noted there would be a greater focus than before on club deals and joint venture structures, rather than commitments to large funds with multiple investors. However, Nielsen was quick to add: “There is still room in our programme to invest in more risky products in opportunistic real estate and the value-added space.”

ATP Real Estate received the green light to invest €700 million earlier this year from its pension fund client. It came after it completed a €1 billion programme.