Alaska Permanent Fund Corporation is planning to invest $400m (€296m) in infrastructure and $160m in single-family homes in the US.
The pension fund has launched its third joint venture with American Homes 4 Rent, providing 80% of the $200m capital to invest in rented accommodation.
The Permanent Fund provided $400m and $200m for two previous partnerships in 2012.
Michael Burns, executive director for the pension fund, said: “We have been pleased with the results we have had with American Homes up to this point.
“We are aware that there is now a lot more capital being invested in the single-family-for-rental strategy. We still think that there are good investment opportunities in this sector.
“For the most part this business is run by mom-and-pop operators, which gives our capital and manager a chance to add value to the assets that we buy.”
American Homes owned a portfolio of 25,505 homes in 22 states at the end of March. Its two biggest markets are Dallas/Fort Worth and Indianapolis.
The Permanent Fund also plans to invest $200m in infrastructure funds and $200m in infrastructure co-investments.
“The co-investments could be three kinds of investments,” Burns said. “The two most likely scenarios would be to co-invest with an existing commingled fund on a specific transaction, or to acquire an existing limited partner position in a commingled fund on the secondary market.
He added: “Something we might consider in the future would be for us to buy an infrastructure asset on a direct basis.”
The Permanent Fund has a global infrastructure strategy, mainly focused on the US, Europe and Australia, with a view to generating income returns.
Alaska had an infrastructure portfolio valued at $1.3bn at the end of March.
No comments yet