The SEK 1.5 billion private sector pension fund has opted against investing in private equity real estate funds this year. This time last year, Sandvik was not looking to make direct investments in property and was interested in investing through funds or a managed mandate. It hoped to make its maiden allocation to real estate funds in 2010, provided market conditions were suitable for it to do so. Since then it has decided to invest directly in Sweden rather than through funds. Sandvik, along with seven other private Swedish pension funds, purchased real estate development projects from Swedish developer Skanska and this has helped it reach a 10% allocation. Sandvik has not ruled out the possibility of investing in private real estate funds completely, but does not expect to make a maiden allocation this year. It is unsure as to whether it will make further direct investments in real estate in the next 12 months.
More information on private equity real estate investors is available on Preqin's online product, Real Estate Online