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  • June 2016 (Revised February 2017)
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The Role of Real Estate in Endowment Portfolios: The Case of Christ Church, Oxford

By: David Chambers, Elroy Dimson, Arthur I Segel and Eva Steiner
  • Format:Print
  • | Language:English
  • | Pages:26
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Abstract

The case centers on Christ Church's Treasurer, James Lawrie, who is contemplating his options for investing a portion of the College's endowment in real estate. Approximately 1/3 of the total $690 million endowment was allocated towards real estate, much higher than the typical 4% allocation by his American counterparts. Differing from many U.S. endowments, real estate has remained a vital part of the Christ Church endowment since its founding in the mid-16th century. The College began with significant real estate holdings originally received from Henry VIII, which seeded the College's endowment. In the early 1980s, real estate represented 70% of the endowment's holdings and from 2002 to 2015, Christ Church's direct investments returned c.10% annually. Lawrie contemplates the future role of real estate in the College's portfolio, assesses the performance of the "U.S. Endowment Model," and compares Christ Church's performance against others as he weighs a variety of investment strategies including redevelopment, land sales, specialist funds, pooling capital with the other Oxford Colleges, and taking on more debt considering the once-in-a-generational low interest rates.

Keywords

Real Estate; Endowment Management; Endowments; United Kingdom; Oxford; Portfolio Allocation; Higher Education; Investment Portfolio; Property; Corporate Finance; Financial Services Industry; United Kingdom

Citation

Chambers, David, Elroy Dimson, Arthur I Segel, and Eva Steiner. "The Role of Real Estate in Endowment Portfolios: The Case of Christ Church, Oxford." Harvard Business School Case 216-086, June 2016. (Revised February 2017.)
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About The Author

Arthur I Segel

Finance
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Related Work

    • August 2016
    • Faculty Research

    The Role of Real Estate in Endowment Portfolios: The Case of Christ Church College

    By: Arthur I. Segel and Alexander W. Schultz
    • June 2016 (Revised February 2017)
    • Faculty Research

    The Role of Real Estate in Endowment Portfolios: The Case of Christ Church, Oxford

    By: David Chambers, Elroy Dimson, Arthur I Segel and Eva Steiner
Related Work
  • The Role of Real Estate in Endowment Portfolios: The Case of Christ Church College By: Arthur I. Segel and Alexander W. Schultz
  • The Role of Real Estate in Endowment Portfolios: The Case of Christ Church, Oxford By: David Chambers, Elroy Dimson, Arthur I Segel and Eva Steiner
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