University of Michigan endowment commits to real estate-related funds
By Christine Williamson | June 25, 2012 2:54 pm
University of Michigan's endowment, Ann Arbor, made commitments to two real estate-related funds, according a report by Timothy P. Slottow, executive vice president and CFO.
A commitment of $100 million was made to Canyon Capital Realty Advisors' Discretionary Mortgage Investment Account IV from the university's $7.8 billion long-term endowment portfolio, according to Mr. Slottow's report for the June 21 Board of Regents meeting. The fund invests in private real estate loans, including bridge and mezzanine financing, and corporate securities collateralized with real estate properties.
UM has committed a total of $225 million to four prior Canyon Realty Advisors' funds, according to the report.
Endowment investment officials also committed $15 million to Westbrook Real Estate Fund IX, managed by Westbrook Partners. The fund invests in properties and portfolios in New York, Boston, San Francisco, Washington, Los Angeles, Tokyo, London and Paris.
“These gateway cities have a long history of stable, proven real estate fundamentals,” Mr. Slottow said in his report, adding that “the fund will target value-add properties that might need repositioning and/or have distressed capital structures. Targeted sectors will include office, apartments, hotel, retail and industrial.”
The new fund represents UM's fifth in Westbrook Partners' funds. The four previous commitments totaled $60 million, Mr. Slottow wrote.
Rafael Castilla, director of risk management in the university's investment office, could not be reached for more information.