UBS Global Asset Management has won a “fierce competition” for a €500 million multi-manager mandate from Bayerische Versorgungskammer (BVK), Germany’s largest public pension, to invest in real estate globally.
The division of Swiss bank UBS said today in an announcement that it had a wide brief to invest the capital that could include core, value-added and opportunistic investments worldwide, potentially including “niche real estate and BRIC strategies”.
BVK, which has approximately €50 billion in capital under management reflecting contributions from 12 professional and community pension plans, ran a tender process that included numerous rivals to UBS.
UBS said in the announcement: “BVK…awarded the mandate to UBS Global Asset Management in the face of fierce competition amongst potential providers, and following a comprehensive due diligence process undertaken since earlier this year.”
Tilman Hickl who heads the division’s global real estate business in Germany, accredited UBS’ “extensive investment, risk management and structuring capabilities” as factors that persuaded BVK to commit its capital.
UBS said it was still in discussions about the intended geographical split for BVK's mandate but that “a typical global portfolio might however split very roughly Asia 20 percent, Europe 40 percent, Americas 40 percent.”
Aside from BVK’s mandate, UBS’ Global Real Estate Multi-Manager business has attracted more than $1 billion of net commitments from 35 investors so far this year.
The platform currently accounts for 16 percent of the €46 billion in assets under management held by UBS's wider real estate business.