AUGUST 15, 2013

SDCERS invests $20 million in European real estate fund

by Sara Kassabian

The $5.8 billion San Diego City Employees’ Retirement System (SDCERS) has approved an investment of €15 million ($20 million) in Europa Fund IV, according to minutes from an Aug. 8 board meeting.

In the recommendation, SDCERS investment officer Jamie Hamrick, notes that the pension fund’s real estate consultant, Hewitt EnnisKnupp (HEK), determined that the fund meets the real estate investment criteria and portfolio objectives of the firm. The SDCERS 2013 fiscal year real estate investment plan aimed to commit up to $40 million to noncore real estate strategies, according to documents from the pension fund. The $20 million investment in Europa Fund IV fulfills the remaining amount of the planned $40 million commitment to noncore strategies.

The fund, managed by London-based Europa Capital, will invest in opportunistic real estate strategies in Europe. The fund launched in August 2012 and is targeting approximately €750 million ($1 billion) in capital. Europa Fund IV will invest in liquid markets such as the United Kingdom, Germany and France.

SDCERS invested in the firm’s previous noncore fund, Europa Fund III. According to meeting documents, the pension fund has had a positive experience working with the firm, which helped inform their decision to invest in Europa Fund IV.

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