Cohen & Steers Capital Management has been hired by an unnamed sovereign wealth fund to manage a $1bn (€891.6m) global real estate investment trust (REIT) mandate.
Marc Haynes, a senior VP at Cohen & Steers, who declined to name the investor, said: “The investor did a very thorough job during its search process which took them 12 months before making a final decision.”
A public REIT strategy is a way for large institutional investors to invest capital into the marketplace quickly. REITs’ attraction is also due to it currently being undervalued.
“Given where we are currently with the limited number of transactions in private real estate, more institutions are looking at public REITs as a way to invest capital at a faster rate.
“It would take several years for a $1bn investment mandate to be invested in private real estate,” said Haynes.
The global mandate will be benchmarked against the FTSE EPRA NAREIT Global Real Estate Index.
According to a Cohen & Steers report, most REITs are trading at a 6.7% average discount to net asset value on a global basis.
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