UNITED STATES - Almanac Realty Investors has secured an extra $95m (€73.8m) from three pension funds as it seeks to raise up to a $1bn for its latest real estate fund by the end of October.
New Mexico State Investment Council, Los Angeles City Employees Retirement System and the Employees Retirement System of the State of Hawaii have approved $50m, $25m and $20m, respectively, in commitments to the Almanac Realty Securities VI fund.
They join New York City Employees Retirement System, Pennsylvania Public School Employees Retirement System and the Los Angeles Department of Water and Power Employees Retirement System, among others, in the fund that will make private placements and provide growth capital to public and private real estate companies, based predominantly in the US.
Almanac will co-invest $7.5m (or 1% of total commitments, if greater) as it seeks to secure between $800m and $1bn for the unleveraged fund, which will have a four-year investment period and 10-year life.
The fund manager is projecting a net internal rate of return (IRR) of 12% for the fund.
Almanac's most recent deal for the strategy was an investment of up to $150m in multi-family operator NRES Holdings, formerly Nolan Real State Services. The capital will be used to invest in apartments with value-added characteristics in selected mid-west and south-west markets with favourable demographics.
New Mexico categorises its commitment to Realty Securities VI as a value-added investment and follows a $50m commitment to Almanac Realty Securities IV in 2005, which was supplemented by an $11.7m co-investment.
The latest commitment is part of New Mexico's has $250m allocation for non-core real estate investments for 2012.
The only other non-core commitment made by New Mexico in 2012 was a $75m investment in Blackstone Real Estate Partners VII.