GLOBAL – San Diego City Employees’ Retirement System is to invest in Europa Capital’s value-add fund, in the latest example of US institutions targeting European real estate strategies.
The pension fund will commit $20m (€15m) to Europa Fund IV, for which Europa Capital is seeking to raise a total of between $750m and $1bn in equity.
The pan-European strategy will focus on the UK, France and Germany, and can include recapitalisations, refurbishments and repositionings. Its most recent acquisition involved the Tour Vista office building in Paris.
San Diego City was an investor in one of Europa Capital’s previous funds, Europa Fund III.
Board meeting documents show that the investment team at San Diego City, led by investment officer Jamie Hamrick, and real estate consultant Hewitt EnnisKnupp believe the new fund is a good fit for the pension fund’s real estate portfolio based on their experience in Europa Fund III and meetings with the Europa Capital team.
The move is the latest in a number of US pension funds investing in European real estate strategies.
Other examples during the past two months include New Jersey Division of Investment’s $140m investment in the Prologis European Properties Fund II, following commitments earlier in the year to real estate debt funds managed by M&G Investments.
New Mexico State Investment Council recently invested $65m in the Perella Weinberg Real Estate Fund II, and California State Teachers Retirement System began exploring the possibility of expanding its real estate exposure in Europe via The Townsend Group.
