The $2.1bn (€1.65bn) Fort Worth Employees’ Retirement Fund (FWERF) Board of Trustees has voted to invest in two funds targeting US student housing and Asian real estate, respectively.
The pension fund has approved a $20m allocation to Campus-Clarion Student Housing Partners and a $25m allocation to SC Capital Partners’ Real Estate Capital Asia Partners’ RECAP IV fund.
Singapore-based SC Capital, which was founded in 2004 by former Westbrook managing director Suchad Chiaranussati, focuses on refurbishing, repositioning and operating under-managed assets or properties acquired from distressed sellers. It invests across Asia, including Japan, China, Hong Kong, Taiwan, South Korea, Thailand, Singapore, Indonesia and Vietnam.
RECAP IV held a first closing of $365m in equity commitments, according to SC Capital’s website. SC Capital has a fundraising target of $750m for the fund, above the $530m raised for predecessor RECAP III in 2012. FWERF is invested RECAP III, which posted a 13.7% return for 2014 as of August.
Campus-Clarion is a joint venture between Campus Apartments and New York-based private equity real estate manager Clarion Partners to invest in and develop US student housing. Campus-Clarion is seeking to raise $550m in capital, and held a first closing in February at $115m.
Joelle Melvi, who joined the FWERF as CIO from New Mexico Public Employees Retirement Association in March, said the two allocations are consistent with the direction of the pension fund’s real estate allocation.
“The construction and pacing of the programme is in line with expectations,” she said. “I do not foresee a change to that plan anytime soon.”
Melvi said FWERF will fund the new investments from ongoing operations. “Capital calls on both investments will be funded according to our cash plan,” she said.
FWERF’s current allocation to real estate is 13%, or approximately $270m. The pension fund targets a 13% allocation to real estate, although it is permitted to range between 10% and 16%.
The fund was invested in 17 private-market real estate managers as of June 30; Clarion will be the 18th. FWERF also invests in publicly-listed real estate through Heitman Global REIT funds.
- American Investors
- Asset Allocation
- Campus Apartments
- Capital Raising
- Clarion Partners
- Closed-ended funds
- Fort Worth Employees’ Retirement Fund
- Hong Kong
- Investment Strategies
- Investment Vehicles
- Joint ventures
- Pension Funds
- Real Estate
- SC Capital
- South Korea
- Student housing
- US Investors