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:
Canada Pension Plan Investment Board
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.
California Public Employees' Retirement System
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.
Oregon Public Employees' Retirement Fund
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.
Los Angeles County Employees' Retirement Association
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.