09 Mar 2017

Separate Account Capabilities

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Over 50 years of separate account experience

Principal Real Estate Investors has considerable experience designing and implementing private real estate equity separate accounts. We have been
managing separate account assets since 1959 and were awarded our first non-affiliated separate account mandate in 1988. 1

A separate account enables us to tailor an investment to meet the specific needs and objectives of a client. Our goal for our separate account clients is to maximize their long-term, risk-adjusted returns, which we achieve through:

  • The development of clear investment objectives and strategies with our clients
  • State-of-the-art research
  • Active management of each portfolio through tactical property and market selection
  • Timely and disciplined execution of complex transactions
  • Hands-on asset management
  • Highly standardized financial controls, and
  • Ongoing performance and risk management reviews by senior management

Our Private Equity Real Estate separate account clients                                                                                                                                                                                                                                                              

Real estate private equity assets (30 June 2017)

 

Foundations of our separate account success

Our ability to successfully tailor and manage a separate account to meet a client’s specific needs and objectives relies on the following attributes of our real estate platform:

  • Research: Our research capabilities, which includes over 230 investment professionals covering 50 U.S. markets, are critical to our ability to assess relative value and to deliver on our clients’ investment goals.
  • Transaction access: 57% of acquisitions since 2003 have been sourced by Principal in an off-market or limited bid manner, which provides greater value to investors.
  • Value-add and development expertise: 289 value-add and development projects in the U.S. valued at $12.1 billion since 2001.
  • Leasing skills: over 380 million square feet of leases signed across our portfolios since 2001.
  • Responsible Property Investing: 83 assets, valued at $4.8 billion, that have been certified with the LEED or ENERGY STAR designation.
  • Joint Ventures: 80+ existing joint venture partners.

Responsible property investing: our green expertise

As our clients’ fiduciary, our approach to responsible property investing (RPI) is built around meeting their goals. The majority of our clients are increasingly focused on the triple bottom line —Environmental, Social and Governance. Over the years, we have shown investors time and again that responsible investing not only has the potential to improve their bottom line long-term, but they can achieve that goal while protecting the environment and creating properties in which their employees or tenants will want to work and live.

 

Disclosure

Unless otherwise noted, the information in this document has been derived from sources believed to be accurate as of August 2017. Information derived from sources other than Principal Global Investors or its affiliates is believed to be reliable; however, we do not independently verify or guarantee its accuracy or validity. Past performance is not necessarily indicative or a guarantee of future performance and should not be relied upon to make an investment decision.

The information in this document contains general information only on investment matters. It does not take account of any investor’s investment objectives, particular needs or financial situation and should not be construed as specific investment advice, an opinion or recommendation or be relied on in any way as a guarantee, promise, forecast or prediction of future events regarding a particular investment or the markets in general. All expressions of opinion and predictions in this document are subject to change without notice. Any reference to a specific investment or security does not constitute a recommendation to buy, sell, or hold such investment or security, nor an indication that Principal Global Investors or its affiliates has recommended a specific security for any client account.

Principal Financial Group, Inc., Its affiliates, and its officers, directors, employees, agents, disclaim any express or implied warranty of reliability or accuracy (including by reason of negligence) arising out of any for error or omission in this document or in the information or data provided in this document.

All figures shown in this document are in U.S. dollars unless otherwise noted. All assets under management figures shown in this document are gross figures, before fees, transaction costs and other expenses and may include leverage, unless otherwise noted.

This document is issued in:

  • The United States by Principal Real Estate Investors, LLC, which is regulated by the U.S. Securities and Exchange Commission.
  • Europe by Principal Global Investors (Europe) Limited, Level 1, 1 Wood Street, London, EC2V 7JB, registered in England, No. 03819986, which has approved its contents and which is authorized and regulated by the Financial Conduct Authority.
  • Singapore by Principal Global Investors (Singapore) Limited (ACRA Reg. No. 199603735H), which is regulated by the Monetary Authority of Singapore and is directed exclusively at institutional investors as defined by the Securities and Futures Act (Chapter 289).
  • Australia by Principal Global Investors (Australia) Limited (ABN 45 102 488 068, AFS License No. 225385), which is regulated by the Australian Securities and Investments Commission and is only directed at wholesale investors (as defined in sections 761G and 761GA of the Corporations Act).
  • This document is issued by Principal Global Investors LLC, a branch registered in the Dubai International Financial Centre and authorized by the Dubai Financial Services Authority as a representative office and is delivered on an individual basis to the recipient and should not be passed on or otherwise distributed by the recipient to any other person or organization. This document is intended for sophisticated institutional and professional investors only.

In Europe, this document is directly exclusively at Professional Clients and Eligible Counterparties and should not be relied upon by Retail Clients (all as defined by MiFID). In connection with its management of client portfolios, Principal Global Investors (Europe) Limited may delegate management authority to affiliates that are not authorized and regulated within Europe. In any such case, the client may not benefit from all protections offered by rules and regulations enacted under MiFID.

This document is not intended for, distributed to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Properties shown are for example purposes only and is to illustrate examples of real estate property types invested in by Principal Real Estate investors.