Los Angeles County Employees Retirement Association (LACERA) is planning to invest €50m in a Nordic real estate fund.
Fund manager CapMan is hoping to reach a first close for the fund, Nordic Real Estate II, before the end of June.
According to a LACERA board meeting document, the pension fund is targeting the fund as a complement to its existing pan-European real estate exposure.
CapMan did not comment but in an interim report published last week it said it was “well positioned to reach the €350m target size for the fund”.
It announced the intention to raise successor to its first fund – which raised €273m in 2013 – last year.
In its interim report this month, it said: “In line with its predecessor fund, the new value-add fund would invest mainly in mid-sized office, retail and residential properties in growth centres in Finland, Sweden, Denmark and Norway.”
According to LACERA, CapMan will co-invest at least 3% of aggregate commitments, up to a maximum of €11m, with €10m from balance sheet capital and €1m from the management team.
The planned commitment by LACERA would be its first investment in Europe since it made the decision to expand its international real estate portfolio last year.
It would increase the pension fund’s international real estate holdings from 5.3% to 6.1% of the total real estate portfolio. The long-term goal is 15%.
LACERA wrote in a board meeting document that its investment staff expects to present two to three European fund commitment recommendations annually to meet the objective.
Each individual commitment would be around $50m (€45.8m) with a view to committing a total of $300m over the next three years.