US pension fund Washington State Investment Board (WSIB) has proposed the creation of a Hong Kong-based real estate investment manager that would initially focus on real estate markets in Asia, according to the board meeting agenda of its private markets committee.
According to the proposal, the $132.3-billion WSIB will commit $250 million to Crane Capital, the new Hong Kong-based real estate investment manager. Additionally, the pension fund will transfer $400 million of assets from Evergreen Investment Advisors to the new entity, per an IPE Real Assets report.
In December 2018, WSIB approved a follow-on investment of $500 million in Evergreen Real Estate Partners, a global real estate portfolio managed by Evergreen Investment Advisors. It previously committed a total of $5.2 billion to Evergreen. Evergreen Investment Advisors was formed by WSIB and M3 Capital Partners.
If the proposal is approved by the board, WSIB will take $400 million from Evergreen Real Estate Partners and move it to Crane Capital. The board will vote on the proposal on 21 February.
DEALSTREETASIA has reached out to WSIB for further details about Crane Capital.
WSIB, which invests across 34 funds, has total assets under management of $132.3 billion as of September 30, 2018. Of this, about $17.2 billion is invested in real estate. However, the pension fund’s real estate exposure in Asia is limited, making up only 4.2 per cent of the total, according to its latest quarterly investment reports.
In December 2018, WSIB approved a $200-million investment in Beijing-based Centurium Capital’s maiden fund – Centurium Capital Partners 2018 LP, a mid-cap growth equity and buyout fund investing in the consumer and healthcare sectors in China.