NORTH AMERICA – The Arizona State Retirement System and Forest City Enterprises have come together to form a $400m (€304m) strategic capital partnership to build apartments in the US.

The pension fund will provide 75% of the capital, and Forest City the remainder.

The expectation is that the ownership interest in any properties in the venture will follow the same lines as the equity contributions.

The partnership's total capitalisation is projected to range from $800m to $1bn.

David LaRue, president and chief executive at Forest City, said: "[The Arizona State Retirement System's] financial strength and investment acumen, combined with Forest City's multifamily development and management expertise, make this a powerful partnership that will benefit stakeholders of both organisations. 

"Activating existing entitlement gives our partnership clear advantages in the marketplace."

One of the first projects to be funded will be the B2 Brooklyn project in New York, which involves the construction of a 363-unit apartment complex over 32 storeys. 

Jeff Linton, senior vice-president of communications at Forest City, said: "This venture allows Forest City to leverage its investment capital and still hold an ownership position in its projects. This is part of the company's long-term investment plan."

The core markets for the investment fund, which Forest City will manage, include New York City, Washington, DC, Boston, Los Angeles and San Francisco.