Florida State Board of Administration has increased its exposure to European real estate by investing $272m (€200m) in three commingled funds.

The investments are a $100m commitment to the Starwood Opportunity Fund X, which will be focusing 50% of its deals in Europe, a $100m commitment to Europa Real Estate Fund IV and a $72m commitment to Tristan Capital Partners’ European Property Investors Special Opportunities (EPISO) III.

The commitments are among the first issued by Florida for Europe.

Steve Spook, senior investment officer for real estate for Florida, said the funds were selected after extensive due diligence. “We would not isolate any discrete or specific attribute,” he stated.

Europa Capital is seeking a total equity raise of €750m for Fund IV. It will be investing in EU markets, Norway and Switzerland. with a value-added strategy.

Targeted returns are a gross IRR of 25% and a net IRR of 20% with 65% leverage.

Tristan Capital Partners is seeking to raise $750m for EPISO III and will be focusing on Germany and Poland, with some deals considered in the UK.

The European related commitments issued by Florida represent 36% of the $761m worth of real estate acquisitions and commitments approved during 2014.

All of the other capital invested this year has been located in the US in the form of direct acquisitions by separate account managers.

They include a $91.5m deal for a portfolio of industrial properties in New Jersey, a New York City office building for $186m, two Boston retail assets for $22m, and a Los Angeles apartment development for $88m.

The pension fund also invested $31m in three student housing complexes – two at the University of South Florida in Tampa and one at Marquette University in Milwaukee – through Heitman.

Florida also bought a 562-acre vineyard in San Luis Obispo, California for $20m through Prudential Mortgage Capital.

 

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