Publica: Real estate abroad in its sights
Starting in 2017, Publica, the largest public pension fund in Switzerland, plans to invest four percent of its real estate investments in foreign real estate funds within six years, IPE Real Estate reports.
As Publica portfolio manager David Engel told IPE, the foreign exposure is to be made indirectly - via investments in open-ended real estate funds. Investments are planned mainly in core assets, but up to ten percent of the planned investment volume could also flow into value-add investments. Initially, investments in open-ended real estate funds with a broad investor base are planned; later, the company may also want to act as an individual investor in special mandates.
In a later phase, investments in closed-end real estate funds or participations in club deals or joint ventures might also be considered. According to Engel, the foreign exposure will be distributed according to the following regional quotas: North America (50%), Europe (30%) and Asia (20%). (bw)
