GLOBAL - The Kansas Public Employees Retirement System has approved a $30m (€23.1m) commitment to the Harrison Street Real Estate Partners III commingled fund.
This is the first time the pension fund has invested with Harrison Street Real Estate Capital.
Pension fund officials cited Harrison Street's track record of producing solid cash flow and the fact it invests in non-traditional property, including student housing, senior housing and medical office buildings.
Harrison Street Capital is seeking a total equity raise of $500m for Real Estate Partners III.
The real estate manager recently received a $25 commitment from the San Francisco City and County Employees' Retirement System.
The real estate manager will be making a $17m investment into the commingled fund as a co-investment and is aiming for a final closing for the commingled fund some time next month.
It estimates that investors in the commingled fund will achieve an 18% net internal rate of return and a 2x return of invested capital once fees and expenses have been paid.
Harrison Street Capital is hoping to make its first investments in the commingled fund, which has a three-year investment period, in the next 30-60 days.
The large majority of the deals for the commingled fund will be located in the US.
The partnership agreement stipulates that no more than 10% of the total equity capital will be invested outside of the US, either in Canada or Mexico.