UC California Investment Office to Create a Real Estate Operating Company
Posted on 11/18/2021
The University of California Board of Regents agreed to form an in-house real estate operating company (REOC). The mega endowment plans to increase its allocation to real estate beyond real estate funds and separate accounts. The REOC will help the endowment manage RE exposure in a more methodical way rather than buying assets and having an outside company manage properties at high fees.
The endowment giant is keen on buying properties such as data centers and other types of digital properties, and senior housing and student housing, particularly properties adjacent to University of California campuses. The UC Board of Regents’ investment office owns properties that are adjacent to UC campuses that could be sold for someone else to develop.
Within the board’s US$ 90.8 billion defined benefit plan, its US$ 4.3 billion real estate portfolio’s best-performing period was for the 10 years ended September 30, 2021 when it earned the same return as the benchmark at an annualized net 9.3%.
Keywords: UC California Investment Office.