Separate Accounts are becoming a more popular way for investors to penetrate the real estate market. This year saw a number of separate account commitments made, typically as additional capital commitments. Below is a of list investors that made notable separate account commitments in 2014:
In August, the Board had allocated an additional $500 million to its industrial joint venture with logistics developer Goodman Group. The Goodman North American Partnership (GNAP) now totals $2 billion, representing $1.1 billion from Goodman and $900 million from CPPIB. The partnership invests in modern logistics and warehouse facilities in major US markets. The venture first launched in October 2012 with an initial capitalization of $890 million between both partners.
In September, the California Public Employees' Retirement System had allocated $1.3 billion in additional capital to three partnerships. The System allocated $600 million towards its Institutional Logistics Partners fund with Bentall Kennedy, which invests in core US commercial real estate. CalPERS had also added a total of $700 million to two separate accounts with GI Partners, with $400 million for its TechCore partnership and $300 million for its CalEast Solstice partnership.
In August, The Oregon Public Employees’ Retirement Fund had allocated $200 million towards its Lionstone Real Estate One, managed by Lionstone Partners. The commitment represents a follow-on investment to an existing joint venture with Lionstone, dubbed Cash Flow Office One. The joint venture will focus on office properties in high-growth markets but will also allow for up to 20 percent of the capital to be invested in non-office sectors such as multifamily or retail.
In March, the Alaska Permanent Fund had awarded LaSalle Investment Management a £250 million mandate to invest in UK commercial property. This represents the Funds’ first investment in European real estate.
In June, LACERA had approved an additional $250 million commitment to an existing $500 million real estate debt mandate with Cornerstone Real Estate Advisers. Through its separate account, LACERA provides floating-rate bridge loans on high-quality assets in key locations in the US. The original mandate was formed in 2011.