Institutions Cast a Wide Net
This is an HTML version of an article that ran in the July/August 2013 issue of Real Estate Forum. To see the original story, click here.
Ask some of the nation’s biggest investors what they’re most worried about these days, and the answer won’t be much different than prior years. Political and economic uncertainty. Interest rates. Job growth. And—this year at least—pricing. That is, what will happen to pricing now that everyone’s looking be more aggressive in terms of acquisitions.
That’s right; after several years of playing it safe, institutional capital is once again looking to dominate the market. Where, when and how to place their capital is what most of the conversation centered around during the 17th Annual Transwestern/Real Estate Forum Institutional Investor Symposium, held this past June in Washington, DC. The event brought together decision makers from some of the nation’s top institutions for a frank and lively discussion of the environment for business. Here’s some of what they had to say.
PANELISTS (from left):
- Kevin Smith is senior managing director and head of US business for Prudential Real Estate Investors in Madison, NJ. The company has about $53 billion in real estate equity investments globally, with $32.2 billion of that in the US.
- William Carlson is senior managing director of the real estate group for Cigna Investment Management in Hartford, CT. As of June 30, 2013 the firm had approximately $5 billion in domestic real estate assets, split into $2 billion in equity and $3 billion in debt.
- Steve Wallace is the Chicago-based managing director of Cornerstone Real Estate Advisers, part of the Massachusetts Financial Group. The company has approximately $41 billion in assets under management globally. Of that figure, $39 billion is in the US, split into $12 billion in equity and $27 billion in debt investments.
- Steve Pumper(moderator) is an executive managing director with Transwestern in Houston.
- Michael Desiato (moderator) is vice president and publisher of ALM’s Real Estate Media Group, based in New York City.
- Jim Halliwell is managing director for Principal Global Investors in Des Moines, overseeing the firm’s investments for the Eastern US. The firm’s current assets under management are approximately $45 billion, including $26 billion in equity and $20.5 billion in debt investments.
- Jamie Stolpestad is CEO of Allianz Real Estate of America in New York City. Allianz has a global investment portfolio of over €500 billion. The real estate group’s global assets under management total about €28 billion, $8 billion of which is in the US. The US portfolio is about $6.5 billion in debt and the balance in equity.
- Steve Taylor is a Washington, DC-based director with MetLife Real Estate Investors. The company has $42.5 billion in debt investments and another $12.4 billion in equity real estate, primarily domestic plays.