The Florida State Board of Administration has made a €50m commitment to CapMan’s Nordic Real Estate Fund.
Steve Spook, senior investment officer for real estate at Florida, said the investment provided more diversification for the fund’s total investment portfolio, which now stands at $152bn (€136bn).
The commitment makes up 18.3% of the €273m capital raise recently completed by CapMan for the fund, which is also backed by institutional investors in Europe and the US.
Mika Matikainen, senior partner and head of CapMan Real Estate, said the fund had a value-add strategy, with a focus on office, retail and residential properties in larger and more liquid Nordic cities.
Capman is targeting the established and growing sub-markets of Stockholm, Helsinki and Copenhagen.
Florida placed its commitment into the non-core sector of its real estate portfolio.
The pension fund has approved two other non-core real estate commitments, with $100m to Rockpoint’s Real Estate Fund V and $50m to the CIM Group’s Fund VIII.
Rockpoint V, an opportunity fund investing in US gateway cities like San Francisco, New York City and Boston, can also invest abroad, such as in the UK and France.
The manager is aiming to raise $2.5bn for the fund, with limited partners projected to achieve an 18-20% gross IRR.
CIM Group makes a mixture of equity, preferred equity and mezzanine debt investments for CIM Fund VIII.
The firm seeks investments in urban areas of US cities, including San Francisco, Los Angeles and New York City, with a targeted 20% gross return.
Leverage will be no greater than 75% on a loan-to-cost basis.
