Oregon Public Employees Retirement Fund has added $300m (€216m) to its real estate investment portfolio through three commitments.
The pension plan has made committed $100m each to DivcoWest Fund IV REIT, Waterton Residential Fund XII and Talmage Total Return Partners.
DivcoWest Properties will make a $15m co-investment in Fund IV. The value-added fund will buy office and R&D properties that can be improved through capital investment, repositioning and development.
Most of the properties will be US assets, with 90% of the portfolio in San Francisco, Southern California, greater Boston and New York City. The fund, which can also invest in Europe or Canada, is targeting a gross IRR of between 14% and 18%.
Waterton’s Residential Fund XII is aiming to raise between $1bn and $1.2bn. The fund will invest solely in US apartments – either through existing assets where the value can be added through repositioning and renovation – or by buying distressed debt backed by apartments.
Talmage, meanwhile, is looking at a total equity raise of around $500m, with a projected annual return of 10% to 12%. The fund will invest through debt structures in the US, including CMBS, senior mortgages, B-notes and mezzanine debt.