Almanac Realty has given US property developer HRI Properties $150m (€118m) in new capital.
Almanac’s Realty Securities VI fund has provided an initial $100m to a new HRI subsidiary, with a further $50m subject to conditions.
Private equity firm Almanac has previously been backed by New Mexico State Investment Council, Los Angeles City Employees Retirement System and the Employees Retirement System of the State of Hawaii. The fund manager has also been backed by San Francisco City and County Employees’ Retirement System and Illinois Municipal Retirement Fund in the past.
HRI will buy and redevelop US real estate. The New Orleans based firm typically buys historic properties ready for conversion to hotel, retail and multifamily use. HRI said the capital could also be used to enter into joint ventures with other institutional partners and property owners.
HRI said it would acquire “high-quality, mixed-use projects with for-rent residential and hospitality components”. The firm is focusing on the urban core of 25 metropolitan statistical areas.
HRI currently has five projects under construction in Louisiana, Virginia and Texas with total development costs of $285m and representing 702 apartment units and 359 hotel rooms.
Almanac managing director, Justin Hakimian, said the firm recognised the role that HRI is playing in a “remarkable comeback story in New Orleans post-Hurricanes Katrina and Rita”.
The Almanac investment, HRI said, helps increase prospects for becoming a publicly traded company.