GLOBAL - The Kansas Public Employees Retirement System has signed a contract to allocate $75m (€58.1m) to the UBS Trumbull Property fund, managed by UBS Realty Investors.
However, according to industry sources, the Trumbull Property fund had an entry queue to get into the fund of $2bn at the end of 2010.
This means it might take a year before any capital from Kansas PERS actually goes into the commingled fund.
UBS is not the only open-ended core commingled fund in this situation. The JP Morgan Strategic Property fund also has a $2bn entry queue for its fund, while the Cornerstone Patriot fund, managed by Cornerstone Real Estate Advisers, has an entry queue of $75m.
The entry queues for many core open-ended commingled funds are becoming necessary as managers raised a good amount of capital last year and had a difficult time finding new properties to buy.
UBS buys a mixture of core office, industrial, retail and apartments in the US for its Trumbull fund.
Kansas PERS now has made three investments in core open-ended commingled funds.
In early 2010, the pension fund approved a $100m allocation to the LaSalle Property fund.
Prior to that, it invested in the Prime Property fund managed by Morgan Stanley Real Estate.