Pennsylvania State Employees’ Retirement System is considering investing in funds managed by The Rockpoint Group and Prudential Real Estate Investors.
The pension fund could commit to the managers’ respective Real Estate Fund V and Senior Housing Fund V vehicles by year-end. Pennsylvania typically commits up to $50m (€38.7m) to funds.
Rockpoint is looking to raise $2.5bn for Fund V. The Boston-based firm, which would not comment, is co-investing 1.5% of total capital committed to the fund.
The fund is aiming for 18% to 20% gross IRR, with investors expected to make a minimum $25m commitment to the fund. Leveraged at 60%, the fund will target the office, retail, hospitality and residential sectors in US gateway markets, including San Francisco, New York City and Boston.
The fund can also invest beyond the US and may target the UK and France.
Rockpoint, which will also consider individual assets and portfolio transactions, raised $1.95bn of equity for its Fund IV in March last year.
Prudential Real Estate Investors (known as Pramerica in Europe) is looking to raise $500m for its senior housing fund. The manager, which declined to comment, said the fund is targeting a 10% to 14% IRR.
The fund will invest in existing senior housing assets, joint ventures, forward commitments and developments and mezzanine debt.
Most of the fund’s investments will be made in the US, with 20% of the fund able to invest in Canada.