Investors

The $147bn US pension will decide today whether it will respond to the denominator effect by increasing the amount it is allowed to invest in real estate to 17% of total assets.

The private equity real estate firm – which last year took on former CalPERS Real Estate head Mike McCook as advisor – has resolved an argument with the activist shareholder of its publicly-listed fund. Trikona says opportunities in Indian real estate are to be found in ‘deep value’ not distress.

As limited partners open up their real estate allocations to the emerging markets, developing countries in Asia are at the top of the list, with China and India of particular interest. By Eva Poon

At the same time that top jobs disappear at large investment banks and property lenders, private equity real estate firms are turning to the sector for talented dealmakers.

Aviva Investors' rebranding – with its recent hire of Steve Felix – is the latest example of large insurance companies expanding their investment management business.

Real estate was the only asset class to make a positive return for the $29.5bn pension fund, however allocations to private equity real estate have now topped 10.5% against a target of 8%.

Jay Fewel, OPERF senior investment officer, said over-allocation and the burden of re-upping with existing GPs will leave little money for any group that doesn’t already have an established relationship with the $54.4bn pension.

The investment firm has acquired a majority stake in the Dubai-based business and intends to expand it regionally.

The $1.7bn pension started investing in real estate just three years ago, however it is now considering increasing its target allocation by 3% and investing in international real estate for the first time. The plan said it was 'shutting off two-thirds' of the world by focusing on the US.

The Canadian pension has set aside an additional C$1.4bn to invest with opportunistic fund managers, and directly, targeting US and UK distressed real estate.