Bayerische Versorgungskammer, Germany’s largest public pension fund, is betting €750 million on US multifamily as it continues its global expansion.
The deal followed the €80 billion pension fund’s announcement last May that it was planning to add four specialized mandates focusing on the US market. USAA Real Estate Company, led by chief executive Len O’Donnell, received the first mandate, and will target core, build-to-core and value-add acquisitions within major markets across the US. The groups were not available for further comment.
San Antonio, Texas-based USAA RealCo said its goal is to create a portfolio of best-in-class multifamily assets delivering strong cashflow yields with significant asset appreciation potential. USAA RealCo said it would invest a 10 percent ownership interest in future acquisitions and up to 30 percent in future ground-up development transactions. The mandate was seeded with a portfolio consisting of six recently-constructed properties, totaling 1,600 units and including 360,000 square feet of retail space in five major US markets.
BVK has invested in US real estate since at least 2006, according to Real Capital Analytics. Its most recent publicly disclosed transaction was the September purchase of a Washington, DC office property for $116.8 million in a joint venture with LaSalle Investment Management.
The pension fund is now turning its attention to US real estate. In 2015, BVK gave three managers a total of €700 million to invest in Asian real estate. Last year, BVK inked three large European mandates worth a combined €2.1 billion and awarded Universal-Investment a €3.6 billion mandate to invest in Europe and Asia.