The University of Texas Investment Management Company (UTIMCO) has revealed that its pipeline of investments for 2013 includes a pan-European opportunistic real estate fund and a country-specific manager in Germany.
According to a recent board presentation by head of real estate and managing director Mark Shoberg, the university’s overall strategy is to build a global diversified portfolio and, within that, to get “unique access to real estate not available through public markets, opportunistic managers with flexible mandates, niche strategies targeting secular trends and primarily focus on developed markets.”
UTIMCO also said that it made a total of $375 million of investments last year to seven strategies, including $100 million to Meadow Real Estate Fund II, $50 million to Blackstone Real Estate Partners VII, $50 million to Secured Capital V and $45 million to Niam V – a pan-Nordic opportunistic fund.
The Texas university has a $1.4 billion exposure to private real estate, $840 million of which remains unfunded. Three quarters of its portfolio is North American real estate, with Asia accounting for 16 percent. Europe, meanwhile, only makes up 8 percent of its global portfolio by value.
UTIMCO’s plan to invest in a pan-European opportunistic real estate fund is important as real estate professionals in the region suggest appetite exists for US limited partners to seek distressed real estate opportunities, having already taken advantage of distress in their domestic market. Overall, the university describes its strategy in private real estate as “create and sell” and “don’t buy high-end trophy assets.”
The rest of UTIMCO's pipeline for 2013 includes four 're-ups’ with existing manager in North America and a commitment with an office operator. In Asia, its pipeline involves an industrial operator.
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