1. real estate

The 2009 Preqin PE Real Estate Review - Sample Pages
The 2009 Preqin Private Equity
Real Estate Review
- Sample Pages
© 2009 Preqin Ltd
1
The 2009 Preqin PE Real Estate Review - Sample Pages
Contents
1.
Executive Summary
7
12.
Private Equity Real Estate Fund Performance Analysis
-
2.
Data Sources
13
3.
History of Private Equity Real Estate Industry
17
-
History and evolution of the industry, effects of credit crunch on the industry,
decrease in number of funds on the road, average fund size evolution, increase
in number of funds abandoned
13.
4.
Listings of Private Equity Real Estate Funds Closed: 2008 - 2009
23
5.
Overview of Current Private Equity Real Estate Fundraising Market
35
14.
-
6.
Momentum in fundraising market, success in achieving target, fundraising by
geographic focus and manager location, fund size, property focus, targeted
returns, manager experience, funds on the road, interim closes, geographic
focus of funds in market
Overview of Private Equity Real Estate Fundraising by Strategy
-
Overview of core-plus, value added, opportunistic, debt, fund of funds and
distressed fundraising
57
8.
Review of Placement Agents
69
9.
-
10.
11.
16.
Private Equity Real Estate Firm Preferences
141
-
18.
19.
89
20.
Real estate firms by region, country and city, fund manager experience, largest
firms
© 2009 Preqin Ltd
105
21.
377
Private Equity Real Estate Fund Managers
Investors
Figure Index
Other Publications
-
299
Detailed profiles for over 250 investors in real estate funds
Index
-
289
Why investors are attracted to private equity real estate, make-up of investor
universe, strategy preferences, investor size, effect of credit crunch on investor
appetite
Profiles for Key Investors in Private Equity Real Estate Funds
-
153
Detailed profiles for over 350 firms managing private equity real estate funds
Review of Investors in Private Equity Real Estate Funds
-
81
Matrix showing firm preferences by location, strategy and property type
Private Equity Real Estate Firm Profiles
-
Key terms and conditions for 181 real estate funds
Overview of Universe of Real Estate Firms
-
137
Management fees, hurdle rates, carried interest, fee rebates to investors,
manager commitments, key man provisions, no-fault divorce clauses
Listings of Private Equity Real Estate Fund Terms and Conditions
-
Top 50 Private Equity Real Estate Firms
Why placement agents are used for fundraising, factors determining use of
placement agent services
Overview of Real Estate Fund Terms and Conditions
125
Asia, Central and Eastern Europe, China, India, MENA, North America,
Scandinavia, South America, UK, Western Europe
15.
17.
Listings of Private Equity Real Estate Funds on the Road
119
How much dry powder there is to be invested in real estate projects, dry powder
by fund strategy and by region focus
Regional Focus: Key Facts and Figures
-
45
7.
-
Dry Powder Analysis
-
111
Performance of private equity real estate funds, IRRs of private equity real
estate funds, distributions, net multiples, cash-flows, target net IRR by fund
strategy, fund manager experience and performance of private equity real
estate compared to other private equity types
381
Other Preqin Products
2
1. Executive Summary - Sample Pages
Fig. A: Momentum in Fundraising Market - Trend in Quarterly Close Rate 2007 - Q2 2009
Executive Summary
A Dramatic Turnaround
Figs. A and B demonstrate the scale of private equity
real estate’s turnaround in terms of fundraising
following the global financial downturn over the past
12 months.
The amount of capital raised quarterly has been
consistently declining since Q4 2008, reaching a
nadir of $10.3 billion in Q2 2009, a 74% reduction
on the $39.5 billion raised one year previously. At the
time of writing, with only two weeks left to run in Q3
2009, only $2.5 billion has been raised in Q3 2009 as
fundraising has almost entirely ground to a halt.
Fig. B: Final Close as a Percentage of Target Value 2007 - September 2009
Of the funds that have been able to close, an
increasingly large proportion are doing so below
target. As shown in Fig. B, only 18% of funds closed
in 2009 achieved or exceeded their targeted amount,
compared with 79% in 2007 and 54% in 2008.
Supply and Demand Balance
Although there has been a reduction in the number of
funds on the road, there are still currently 367 vehicles
in market seeking an aggregate $191 billion. This
does represent a 16% reduction from the beginning
of this year, when a total of $228 billion was being
sought, but clearly a drop in the supply of funds is
not the primary contributing factor to the decline in
fundraising. With the stock of new vehicles remaining
© 2009 Preqin Ltd
3
1. Executive Summary - Sample Pages
relatively high, it is clearly therefore due to a decline
in investor appetite for new fund commitments that
fundraising is at a low point.
Fig. C: Horizon IRRs as of 31-Dec-08 by Fund Type
The primary factor driving the unprecedented growth
in the PERE market from 2003 to 2008 was the
excellent performance that funds of this type were
returning. As recently as last year, funds of vintages
1999-2003 all had median IRRs in the range of 1528%, with top quartile IRRs regularly exceeding 30%.
In addition, the range of returns was not as varied
as within other private equity fund markets, such as
buyout and venture. Investors were seeing excellent
returns, with the added bonus of a relatively low level
of risk.
Horizon IRR (%)
Loss of Appetite
Change in Fortunes
Of all the different types of private equity, real estate
fared worst following the onset of the credit crunch
and global economic downturn. As Fig. C shows, real
estate horizon IRR performance was -40% over a
one-year period to December 2008. The same chart
also shows that despite the recent poor performance,
over a five-year period real estate funds are still
the top performers in private equity, which further
emphasises the magnitude of PERE’s change in
fortunes.
Investor Attitudes: Short-Term Hiatus or LongTerm Shift?
With recent performance for the fund type at an
all-time low, and with the wider real estate market
remaining extremely unstable and unpredictable, it
© 2009 Preqin Ltd
is understandable that investors are not as keen to
invest in new vehicles as in previous years.
The industry’s problems have been compounded
by the direct effects of the credit crunch, which has
left uncertainty hanging over real estate markets
worldwide. Liquidity issues have hit the real estate
industry hard and part of the fall-out has been
investors in the asset class having to take a step
back until the market stabilises.
There is a strong feeling amongst investors that they
need to be more selective; most still want to commit to
private real estate, they just have to be more vigilant
when doing so. Private equity real estate investors
of all sizes are taking fund manager selection even
more seriously than they would have done in the
recent past. Such sentiment is likely to continue
whilst markets try to find their feet again. However,
commitments to the private equity real estate market
will resume, with many investors indicating to Preqin
that Q4 2009 and 2010 will see them returning to the
market.
A Good Time to Invest?
Many fund managers and industry professionals are
reasoning that the near future could turn out to be an
excellent time to commit to the asset class as fallen
property prices and the distressed environment has
left the market rife with potential bargains. The greater
the bargain, the greater the potential opportunity for
4
1. Executive Summary - Sample Pages
positive returns. This is being emphasised by real
estate firms and, rather than shy away from the
industry, certain investors have reasoned that it will
soon be a good time to enter the private equity real
estate fold. However, there is certainly a prevailing
concern over investing before prices bottom out, as
a more cautious investor base is keen to avoid being
stung for a second time.
Fund Manager Information
Within the body of the Review we have details for the
350 most important fund managers from across the
world, with specific details on all funds being raised,
and also previous vehicles, including performance
data for 645 funds. The 2009 Review also contains
detailed analysis and listings for fund terms and
conditions, an overview of the history of the industry,
analysis on fundraising, and of all different subsets
of the industry - including core-plus, value added,
opportunistic, debt, fund of funds and distressed.
It also includes analysis on placement agents,
performance trends and dry powder.
As a result, the Review represents an excellent
source of intelligence on the industry for real estate
firms, and will save hundreds of hours in gathering
information on trends and firms active in the sector. In
addition it can help further understanding of the latest
developments within the industry, and can be used
to improve marketing materials and presentations.
Investors and advisors also use the Review to ensure
they fully understand the market, and to search for
new investment opportunities.
© 2009 Preqin Ltd
A New Approach
The market for private equity real estate has changed
dramatically, with the days of cheap debt and highly
leveraged deals now departed. A shift in focus and
investment style will be necessary in order to adapt
to the new real estate landscape, and when speaking
with investors, it is essential that managers are
able to communicate that they understand the new
environment and have adapted their approach to suit.
Although they are not investing right now, investors
are still evaluating potential opportunities, and within
the body of the Review we have details for over 260
investors that will be investing in the coming year,
with details of their fund preferences and direct
contact details for the decision makers.
Fundraising is becoming a much longer, more
complex procedure than in recent years, and the
average time taken for funds to achieve a final
close has increased dramatically. A longer dialogue
with existing investors and newer investors will be
more important than ever in securing a successful
fundraising.
We hope that the 2009 Preqin Private Equity Real
Estate Review serves to increase understanding
within the industry for fund managers and marketers,
advisors, investors, law firms, and all other
professionals involved in the industry. As ever, we
welcome any feedback that you have.
5
3. History of the PE Real Estate Market - Sample Pages
the increase in the number of funds being abandoned
between 2007 and 2008. In 2008 there was a significant
increase in the number of funds abandoned as it was
during this year that the effects of the financial crisis
were being felt in the industry. It is expected that more
funds will be abandoned throughout the rest of 2009.
Fig. 3.2: Funds on the Road over Time
The Evolution of the Industry
As Fig. 3.4 shows, there has been an increase in
the proportion of the overall capital raised by debt
vehicles and a slight decrease in the proportion raised
by value added vehicles. Whilst it shows a decrease in
the proportion of capital raised by distressed vehicles
from 2008, it must be noted that many opportunistic
fund managers are now also investing in distressed
assets as part of their investment mandate in order
to take advantage of the opportunities in the current
market.
© 2009 Preqin Ltd
Fig. 3.3: Number of Funds Abandoned Each Year
Number of Funds
The credit crisis has had a profound effect on the
private equity real estate industry, changing the makeup of the industry in terms of what funds have been
raised and what opportunities are out there. Recent
years have seen a growth in the numbers of distressed
and debt vehicles. The credit crisis has resulted in
a number of real estate managers, operators and
owners becoming distressed, looking to refinance
projects and sell off properties or being unable to pay
back loans. Whilst this has meant that other private
equity real estate strategies have suffered, it has
created new opportunities in the debt and distressed
market. Fund managers raising these types of funds
have become more active, increasing fund sizes and
launching more funds. Traditional private equity real
estate fund managers usually associated with value
added and opportunistic funds are also moving into
this area.
6
5. Listings of PERE Funds Closed: 2008-09 - Sample Pages
Fund / Firm Name
Rockwood Capital Real Estate Partners
Fund VIII
Rockwood Capital
Sarofim Multifamily Partners II
Sarofim Realty Advisors
Secured Capital Japan Real Estate
Partners IV
Secured Capital Japan Co.
Spear Street Capital 3
Spear Street Capital
Square Mile Partners III
Square Mile Capital Management
STAG Investments IV
STAG Capital Partners
Stam REI III
STAM Europe
Starwood Debt Fund II
Starwood Capital Group
Stockbridge Real Estate Fund III
Stockbridge Capital Partners
Stratford Land Fund III
The Stratford Company
Fund Final Close Close Placement
Target (mn)
(mn) Date Agent
1,175 USD
964 USD Apr-09
150 USD
Property Preference
Investors
US
Any, Hotels, Office, Retail
LP
US
Multi-family
LP
China, Japan, Asia
Hotels, Mixed Use, Office,
Residential, Retail
NYSTRS, Maryland State Retirement and
Pension System, Illinois Municipal Retirement
Fund, Kansas Public Employees' Retirement
System, New Mexico Public Employees'
Retirement Association, Santa Barbara
County Employees' Retirement System
San Joaquin County Employees' Retirement
Association
Maryland State Retirement and Pension
System, UTIMCO
Office
University of Michigan Endowment
600 USD
600 USD Sep-08
Opportunistic
US
850 USD
806 USD Mar-09
Debt,
Distressed,
Opportunistic
US
38 USD Sep-08
Value Added
LLC
US
Industrial, Office
250 EUR Jan-08
Value Added
SCA
France
Industrial, Office, Retail,
Warehouse / Distribution
630 USD Feb-09
Debt
LP
US
LP
Global
LP
US
Industrial, Leisure/
Entertainment, Office,
Residential, Retail
Land Development
1,000 USD
2,500 USD
400 USD
1,230 BRL
500 USD
200 CAD
UFG Real Estate Fund II
UFG Asset Management
Unitech International Realty Fund I
Unitech Realty Investors
US Industrial REIT II
USAA Real Estate Company
Nordic Aktiv Fund II
Valad Property Group - Europe
150 USD
154 USD Nov-08
Geographic Preference
700 USD
Tricon X
Tricon Capital Group
© 2009 Preqin Ltd
Value Added
Legal
Structure
LP
Core-Plus,
Value Added
535 USD Aug-09 Eastdil Secured Opportunistic
Thor Urban Property Fund II
Thor Equities
Tishman Speyer Brazil Fund II
Tishman Speyer
Tishman Speyer China Fund
Tishman Speyer
Strategy
1,150 USD Mar-09 Farrell Marsh & Opportunistic,
Co., Gold Bridge Value Added
Capital
350 USD Nov-08 HFF Securities Opportunistic,
Value Added
673 USD Sep-08 Credit Suisse
Private Fund
Group
Aug-09
Opportunistic,
Value Added
LP
US, Puerto Rico
Mixed Use, Retail
Opportunistic
LP
Brazil
Mixed Use, Office,
Residential
884 USD Oct-08 Not Used
Opportunistic
LP
China
400 USD
Debt,
Opportunistic,
Value Added
125 USD Jun-09 XT Capital
Distressed,
Opportunistic
269 USD Jan-09 UBS Real Estate Opportunistic
Group (All)
450 USD Jan-08
Value Added
150 EUR
107 EUR Jan-08 Not Used
500 USD
Florida PRIME, Teacher Retirement System
of Texas, Kansas Public Employees'
Retirement System, San Bernardino County
Employees' Retirement Association,
University of Washington Endowment,
Hatteras Investment Partners
85 CAD Apr-09
Value Added
New York City Employees' Retirement
System, Industriens Pensionsforsikring,
Juristernes og Økonomernes Pension Fund
Canada
Residential, Retail
LP
Russia
LP
India
Commercial, Land
Development
Apartment, Commercial,
Residential
Industrial, Warehouse /
Distribution
Commercial, Industrial,
Office
Private REIT US
LP
Denmark, Finland, Norway,
Sweden
Maryland State Retirement and Pension
System, San Bernardino County Employees'
Retirement Association
CalSTRS, New York State Common
Retirement Fund, Teacher Retirement
System of Texas, NYSTRS, PSERS
Teacher Retirement System of Texas, Los
Angeles Fire and Police Pension System,
LACERS, Dallas Police & Fire Pension
System, Fort Worth Employees' Retirement
Fund
University of Michigan Endowment, Aviva
Investors Real Estate Multi-Manager,
Houston Police Officers' Pension System
Life Insurance Corporation of India
CPP Investment Board, NYSTRS
7
17. PE Real Estate Firm Profiles - Sample Pages
CapMan Real Estate
Funds Raised (mn): 1,433 EUR
Tel: +358 (0)207 207 500
www.capman.fi
Realprojekti Oy, Korkeavuorenkatu 32, Helsinki, 00130, Finland
Established: 2005
Fax: +358 (0)207 207 510
CapMan Real Estate invests in commercial premises in the Helsinki metropolitan area, in property development in Finland and hotel properties in Finland and Sweden. CapMan’s value creation plan for real estate assets is based on a wellstructured portfolio and in particular on the active development of individual targets by means of real estate management, construction contracting, new service concepts and active leasing operations.
CapMan Group is an alternative asset manager focused on private equity and real estate in the Nordic countries. The B shares of CapMan plc have been listed on the Helsinki Stock Exchange since 2001.
Strategy: Core-Plus, Opportunistic Regions: Scandinavia Countries: Finland, Sweden Property Types: Commercial, Hospitality, Hotels, Industrial, Office, Residential
Distributed
Rem. Value
Net IRR
Benchmark
Fund
Vintage
Status
Size (mn)
Legal structure Called (%)
Multiple (X)
Quartile
(%)
(%)
(%)
IRR (%)
CapMan Hotels RE
2008
Closed
333 EUR
KY
88.8
3.7
95.1
0.99
n/m
n/m
n/m
CapMan RE II
2006
Closed
600 EUR
KY
47.5
0.7
85.3
0.86
n/m
1.7
3
CapMan Real Estate I
2005
Closed
500 EUR
KY
94.5
99.0
35.1
1.34
n/m
9.3
1
Contacts
Name:
Job:
Tel:
Email:
Jerome Bouix
Senior Partner & Head of Investor Services
+358 (0)207 207 558
[email protected]
Markku Hietala
Head of Real Estate
+358 (0)207 207 631
[email protected]
Jorma Lehtonen
Senior Partner & Deputy Head of CapMan Real Estate
+358 (0)207 207 614
[email protected]
Pirjo Ojanperä
Head of Real Estate Hotel Fund
+358 (0)207 207 642
[email protected]
Date Reported
31-Mar-09
31-Mar-09
31-Mar-09
DRA Advisors
Funds Raised (mn): 2,998 USD
Tel: +1 212 697 4740
www.draadvisors.com
220 East 42nd Street, 27th Floor, New York, NY, 10017, US
Established: 1986
Fax: +1 212 697 7404
DRA Advisors creates and executes value added real estate strategies. DRA's investment philosophy centres on the belief that the most successful real estate strategies are conservative, opportunistic and adaptive. The firm conducts
investment activities through a series of commingled funds, the DRA Growth and Income Funds, whose investors are public and private pension funds, university endowments, foundations and individuals. The firm currently manages over
USD 10 billion in real estate assets. DRA Advisors prefers properties in primary and secondary major markets, typically less than 10 years old, that it can provide equity or mezzanine capital to. DRA will acquire properties with or without
existing debt, and will make investments on an outright acquisition or joint venture basis. All cash or leveraged purchases are in the range of USD 15-300 million.
Strategy: Value Added Countries: US Property Types: Industrial, Office, Residential, Retail
Distributed
Rem. Value
Net IRR
Benchmark
Fund
Vintage
Status
Size (mn)
Legal structure Called (%)
Multiple (X)
Quartile
Date Reported
(%)
(%)
(%)
IRR (%)
DRA Growth & Income Fund VI
2007
Closed
1,250 USD
LLC
29.1
7.0
112.7
1.20
n/m
n/m
n/m
31-Dec-08
DRA Growth & Income Fund V
2005
Closed
1,000 USD
LLC
89.2
11.4
108.6
1.20
11.5
9.3
2
31-Mar-08
DRA Growth & Income Fund IV
2003
Closed
368 USD
LLC
n/m
20.4
n/m
DRA Growth & Income Fund III
2001
Closed
250 USD
LLC
n/m
21.7
n/m
DRA Growth & Income Fund II
1999
Closed
130 USD
LLC
100.0
9.5
15.1
14.2
2
31-Mar-08
DRA Growth & Income Fund
1998
Closed
175 USD
LLC
n/m
10.2
n/m
DRA Opportunity Fund
1995
Closed
83 USD
n/m
21.7
n/m
Contacts
Name:
Job:
Tel:
Email:
David Luski
Executive VP, East Coast Office Acquisitions
+1 212 697 4740
[email protected]
Paul McEvoy
Senior Managing Director
+1 212 697 4740
[email protected]
Brian Summers
Managing Director & CFO
+1 212 697 4740
[email protected]
Francis Tansey
Co-Founder & President, West Coast Office Acquisitions
+1 212 697 4740
[email protected]
Diana Tully
Marketing Director
+1 212 697 4740
[email protected]
Secured Capital Japan Co.
Funds Raised (mn): 205,725 JPY
Tel: +81 (0)3 5776 1300
www.securedcapital.co.jp
Toranomon Towers Office 20F, 4-1-28 Toranomon, Minato-ku, Tokyo, 105-0001, Japan
Established: 1997
Fax: +81 (0)3 5776 1033
[email protected]
Secured Capital Japan Co. (SCJ) was established by the principals of Secured Capital Corp. in California. The company has built its business in real estate investment and asset management in Japan. SCJ manages investments in
properties and non-performing or sub-performing loans for Japanese and international institutions.
Strategy: Opportunistic Regions: Asia Countries: China, Japan Property Types: Commercial, Hotels, Mixed Use, Office, Residential, Retail Debt Strategies: Distressed Debt
© 2009 Preqin Ltd
* = Fund Target
8
17. PE Real Estate Firm Profiles - Sample Pages
Fund
Secured Capital Japan Real Estate Partners IV
Secured Capital Japan Residential Fund II
Secured Capital Japan Real Estate Partners Asia
Secured Capital Japan Real Estate Partners II
Secured Capital Japan Real Estate Partners I
Secured Capital Japan Residential Fund I
Contacts
Name:
Hirohisa Hirayama
Katsuya Takanashi
Jon Paul Toppino
Michael Van Konynenburg
© 2009 Preqin Ltd
Vintage
Status
Size (mn)
2008
2007
2006
2005
2004
2004
Closed
Closed
Closed
Closed
Closed
Closed
535 USD
132 USD
758 USD
176 USD
125 USD
174 USD
Distributed
(%)
Legal structure Called (%)
Job:
General Manager, Property Acquisition Department
Chairman, President & CEO
Director & CIO
Director
LP
LP
LP
LP
LP
LP
85.3
98.7
95.7
96.9
97.5
Rem. Value
(%)
5.1
0.9
41.3
122.8
88.2
Tel:
+81 (0)3 5776 1300
+81 (0)3 5776 1300
+81 (0)3 5776 1300
+81 (0)3 5776 1300
* = Fund Target
Multiple (X)
Net IRR
(%)
n/m
n/m
n/m
n/m
n/m
n/m
Benchmark
IRR (%)
n/m
n/m
12.0
12.6
n/m
n/m
Quartile
Date Reported
n/m
n/m
n/m
n/m
n/m
n/m
30-Nov-08
31-Dec-08
31-Dec-08
31-Dec-08
31-Dec-08
31-Dec-08
Email:
[email protected]
[email protected]
[email protected]
[email protected]
9
18. Overview of Investors in PE Real Estate Funds
California Public Employees’ Retirement System
(CalPERS) is one investor to have put a hold on its
private equity real estate investment program. The
$180.9 billion public pension fund has been one of
the most prolific private equity real estate investors
in the market for a number of years. It has built up
an extensive portfolio that spans the globe and
incorporates a range of strategies. In Q1 2009 it was
overallocated to the asset class so decided to suspend
further investments until 2010. However, as of August
2009 it had increased its self-imposed private fund
embargo and decided it would not look to make any
fund commitments in the following 12-24 months.
Fig. 18.5: Private Fund Strategy Preferences of Private Equity Real Estate Investors
Percentage of Investors
real estate programs. Some found themselves
overallocated to the asset class at the beginning
of 2009 due to the denominator effect caused by
falling stock market prices and back-dated private
fund valuations. As a result many found themselves
temporarily unable to commit to further real estate
investments, due to internal or external regulations
prohibiting overweighting, or due to the uncertainty
caused by this dramatic shift in allocation levels.
Others are simply waiting. The instability caused by
the credit crunch and global economic downturn have
led some investors to delay planned investments.
Some delayed at the beginning of 2009 until Q4 2009,
others planned to wait until 2010, whilst some will not
return to the market for up to 24 months.
Fund Type
as quickly as they predict. The likes of Tokio Marine
and Nichido Fire Insurance and Veritas Pension
Insurance Company fully intend to resume private
equity real estate investment activity, but whether they
will have to delay for longer than originally envisaged,
like CalPERS, remains to be seen.
Strategic Preferences
There are many investors, such as Merseyside
Pension Fund and Arkansas Teachers’ Retirement
System, that continue to invest in private equity real
estate, with their plans formulated and strategies
being actively pursued. However, with commitment
levels at a low point and the industry alive but
enduring unprecedented difficulties, it remains to be
seen whether those delaying investments for the next
few months or quarters will return to the market place
© 2009 Preqin Ltd
Those interested in the private equity real estate
asset class - whether it is investors currently looking
to invest, or those that have in the past and intend
to again in the future - have interest in a number of
different private fund strategies. In some ways the
areas of interest to investors are not dissimilar from
last year. As Fig. 18.5 shows, value added and
opportunistic funds remain the most popular fund
strategies. 71% of private equity real estate investors
are interested in value added funds, compared to the
73% interested in 2008, and 70% are interested in
opportunistic vehicles, which is the same proportion
as last year.
Investors prefer these vehicles as they provide higher
returns than both core and core-plus investments.
One investor looking to allocate to value added and
opportunistic vehicles over the next 12 months is Intel
Corporation Pension Plan. The private pension fund
is under allocated to the asset class and wants to fill
some of its target.
10
19. Profiles of Investors in RE Funds - Sample Pages
ATP Real Estate
Asset Manager
Gothersgade 49, Copenhagen, DK-1123, Denmark
www.atp-realestate.dk
Tel: +45 33 36 61 61
Fax: +45 33 36 61 62
[email protected]
Total Assets (mn):
2,000 EUR
Established: 1995
Allocations to Real Estate
Current
Target
Real Estate (mn):
2,000 EUR (100% of Total Assets)
2,000 EUR (100% of Total Assets)
Private Equity Real Estate (mn):
1,300 EUR (65% of RE Target)
Core Funds (mn):
700 EUR (35% of RE Target)
Real Estate Advisor Townsend Group
Core
Core-Plus
Value Added
Opp.
Distressed
Debt
•
•
•
•
•
•
N. America
Europe
Asia & RoW
Emerging Mkt
First-Time Fund
•
•
Considering
ATP Real Estate had a EUR 2 billion allocation to real estate in Q2 2009. The asset manager makes investments in
private real estate vehicles and prefers to invest in US and European focused funds. For US fund investments, ATP
employs Townsend Group to filter and select potential fund commitments. It does not invest in funds with a global
strategy and will not consider taking more than a 20% stake in any fund. As of Q2 2009, ATP Real Estate had a 25%
to 45% target range to core funds. The remaining allocation is spread across a wide range of private equity real
estate strategies. ATP Real Estate planned to make commitments to five real estate funds in the 12 months following
April 2009. It may invest in the UK or the US as it believes there are interesting opportunities in these markets. It
typically commits EUR 50 million per fund, but it is looking to invest EUR 300 million across the five potential
vehicles. It is considering club deals because it wants to reduce or spread risk, commit smaller amounts to more
funds and know who the other partners are in a fund. It prefers smaller clubs with up to seven investors rather than
funds with around 30 limited partners. ATP Real Estate plans to invest with managers it has existing relationships
with, but will also consider those it has yet to work with, including those raising a vehicle for the first time. The asset
manager is also interested in co-investment opportunities. In light of the credit crunch, it carries out more due
diligence on the funds it considers investing in.
LaSalle Income & Growth V (2008), CB Richard Ellis Strategic Partners US Value V (2008),
Heitman European Property Partners IV (2008), Goldman Sachs Real Estate Mezzanine
Partners (2008), CB Richard Ellis Strategic Europe Fund III (2007), AREIM 1 Fund (2007),
Aberdeen Real Estate Fund Finland (2007), ING Real Estate Iberian Value Added Fund
(2007), ProLogis European Properties Fund II (2007), Tishman Speyer European Real
Estate Venture VI (2006), UBS European Value Added Fund (2006), UBS European Value
Added Fund (2006), LaSalle Euro Growth II (2006), LaSalle Euro Growth II (2006), Heitman
Sample Investments: European Property Partners III (2005), Heitman European Property Partners III (2005),
Europa Fund II (2004), Grosvenor Retail European Properties (2004), Grosvenor Retail
European Properties (2004), Euroind High Income Fund (2004), Euroind High Income Fund
(2004), ING Retail Property Partnership Southern Europe (2004), AREA International Real
Estate Fund (2003), AREA International Real Estate Fund (2003), Heitman Central Europe
Property Partners II (2002), Heitman Central Europe Property Partners II (2002),
Henderson UK Retail Warehouse Fund (2001), ProLogis European Properties Fund (1999),
ING Lionbrook Property Fund (1997)
Contact Name
Position
Tel
Email
Jens Christian Britze
Partner
+45 33 36 61 41
[email protected]
Clemenz Fraessdorf
Investment Associate
+45 33 36 61 47
[email protected]
Managing Director, Head of
Michael Nielsen
+45 33 36 61 67
[email protected]
Real Estate
Ville Raitio
Investment Manager
+45 33 36 61 49
[email protected]
AustralianSuper
Level 33, 50 Lonsdale Street, Melbourne, VIC, 3000, Australia
Tel: +61 (0)3 8648 3900
Fax: +61 (0)3 8648 3999
Total Assets (mn):
26,800 AUD
© 2009 Preqin Ltd
Allocations to Real Estate
Current
Target
Real Estate (mn):
3,495 AUD (13% of Total Assets)
4,020 AUD (15% of Total Assets)
Private Equity Real Estate (mn):
150 AUD (4.3% of RE Allocation)
Core Funds (mn):
3,300 AUD (94.4% of RE Allocation)
General Consultant
Frontier Investment Consulting, JANA Investment Advisers
Core
Core-Plus
Value Added
Opp.
Distressed
Debt
•
•
•
•
•
N. America
Europe
Asia & RoW
Emerging Mkt
First-Time Fund
•
•
•
•
AustralianSuper has a target allocation of 15% to the real estate asset class, and currently has around 13% of its
total assets invested in real estate. This was achieved through a variety of investment vehicles, although the
majority of the real estate allocation is weighted towards unlisted real estate funds. The superannuation scheme
invests on a global basis and is open to considering investment opportunities in a wide range of locations. However,
around 87% of its real estate capital is committed to Australia focused funds. AustralianSuper has a strong
preference for unlisted core real estate funds, with 94.4% of its real estate portfolio weighted towards core vehicles.
It has 2.5% of its real estate allocation in value added vehicles and 1.8% in opportunistic funds.
Charter Hall Opportunity Fund 5 (2007), Fortius Active Property Trust No.1 (2006), Morgan
Stanley Real Estate Fund V Intl (2006), GPT Wholesale Office Fund (2006), Charter Hall
Sample Investments:
Opportunity Fund 4 (2005), ISPT Core Fund (2005), ISPT Grosvenor International Property
Trust (2004), Gresham Property Mezzanine Fund No. 2 (2004)
Contact Name
Position
Tel
Email
Mark Delaney
CIO & Deputy CEO
+61 (0)3 8648 3900
[email protected]
Montana Board of Investments
Public Pension Fund
2401 Colonial Drive, 3rd Floor, Helena, MT, 59601, US
www.investmentmt.com
Tel: +1 406 444 0001
Fax: +1 406 449 6579
[email protected]
Total Assets (mn):
5,921 USD
Established: 1972
Allocations to Real Estate
Current
Target
Real Estate (mn):
308 USD (5.2% of Total Assets)
355 USD (6% of Total Assets)
Private Equity Real Estate (mn):
142 USD (46.1% of RE Allocation)
148 USD (41.7% of RE Target)
Core Funds (mn):
128 USD (41.6% of RE Allocation)
148 USD (41.7% of RE Target)
General Consultant
RV Kuhns & Associates
Core
Core-Plus
Value Added
Opp.
Distressed
Debt
•
•
•
•
•
•
N. America
Europe
Asia & RoW
Emerging Mkt
First-Time Fund
•
•
•
•
Superannuation Scheme
www.australiansuper.com
[email protected]
Established: 2006
11
19. Profiles of Investors in RE Funds - Sample Pages
Montana Board of Investments invests in private equity real estate funds through its Montana Real Estate Pool,
which it created in April 2006. The board approved a target allocation of 5% of total assets to this pool, but could
invest up to 8%. Montana Board of Investments can also invest up to 1% of its total assets in direct real estate;
however it does not invest in public real estate. Therefore the board has an overall target allocation of 6% to real
estate. As of June 2009, the board had an allocation of 4.9% to the Montana Real Estate Pool and 0.3% to direct
real estate, an overall allocation of 5.2% to the asset class. Approximately 94% of its portfolio was in private real
estate funds, which consist mainly of core, opportunistic and value added funds. The investment policy of the
Montana Real Estate Pool requires the pension fund to invest half of the private fund allocation in open-ended core
vehicles and the other half to be equally split between value added vehicles and opportunistic funds. Montana Board
of Investments has invested in funds utilising other strategies such as core-plus, debt and secondaries. The pension
fund aims to diversify its private real estate portfolio by regional focus, and aims for 10-45% of its investments to be
in the Western US and 10-45% to be in the Eastern US. It has a policy range of 10-40% to the South and 10-40% to
the Midwest. Montana Board of Investments aims for up to 30% in international real estate funds. The board has
target ranges for different property sectors that the Montana Real Estate Pool invests in. The retail, industrial and
residential sectors each have policy targets of 10-40%, and the office sector has a 10-45% target range. The board
remained active in private equity real estate in H1 2009, as it was below its target allocation to this portion of its
portfolio, and made a new fund commitment. TA Realty Associates IX received a commitment of USD 15 million in
June 2009.
Morgan Stanley Real Estate Fund VI Intl (2007), Carlyle Europe Real Estate Partners III
(2007), DRA Growth & Income Fund VI (2007), Beacon Capital Strategic Partners V (2007),
AG Core Plus Real Estate II (2007), CIM Urban Real Estate Fund III (2007), AG Realty
Fund VII (2007), O'Connor North American Property Partners II (2007), MGPA Asia Fund III
Sample Investments: (2007), JER Real Estate Partners IV (2007), Hudson Realty Capital Fund IV (2007), AREA
Real Estate Finance Corporation (2006), TA Realty Associates VIII (2006), Strategic
Partners Value Enhancement Fund (2006), Five Arrows Realty Securities Fund IV (2006),
ABR Chesapeake Fund III (2005), INVESCO Core Real Estate - USA (2004), Clarion Lion
Properties Fund (2000), JP Morgan Strategic Property Fund (1985)
Contact Name
Position
Tel
Email
Portfolio Manager, Private
Ed Kelly
+1 406 444 0523
[email protected]
Equity
Cliff Sheets
CIO
+1 406 444 0001
[email protected]
Portfolio Manager,
Jon Shoen
+1 406 444 0250
[email protected]
Alternative Investments
© 2009 Preqin Ltd
12
2009 Preqin Private Equity
Real Estate Review:
Order Form
Preqin’s Review is the ultimate guide to the PE real estate industry, with comprehensive
profiles and analysis gathered via direct contact by our analysts with hundreds of leading
firms and investors worldwide. Highlights of this year’s edition include:
•
Detailed analysis examining the history and development of the PERE market;
recent funds closed; the current fundraising market; fund terms and conditions;
investors; performance; plus separate sections showing key facts and figures for
the most important sub-sectors (opportunistic, value add, debt etc).
•
Profiles for 350 most important active PERE firms and details for over 1,500
funds, including investment strategies and key information.
•
Profiles for over 250 active institutional investors in the sector, including
investment preferences and key contact details.
•
Detailed listings for all funds recently closed, plus funds currently raising.
The 2009 Preqin Private Equity
Real Estate Review
For more info: www.preqin.com/rer
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