UNITED STATES - Nebraska Investment Council has expanded its real estate portfolio by making a $25m (€16.1m) commitment to the Five Arrows Realty Securities V commingled fund.
Many pension funds have made an allocation to Realty Securities V because they feel this commingled fund is very different from its other real estate investments as it places capital with real estate companies instead of buying properties directly.
Nebraska is keen on this strategy as all of its recent real estate commitments have been with managers - including PRISA II, Beacon Capital Partners V and Rockpoint Real Estate Fund III - that invest for the most part in direct properties, so it has now made its latest move on the recommendation of its consultant, Ennis Knupp & Associates.
Rothschild Realty has total commitments in its Realty Securities V commingled fund worth $717m so it is close to its target equity raise of $750m-$800m.
There will be no leverage on the fund and its investment strategy is to make entity level investments with private and public real estate companies, the vast majority of which will be done with companies in the United States.
Nebraska has an established real estate allocation of 5%, split as 4% in private real estate and 1% in public real estate.
Goldman Sachs and Heitman are the managers for the mandate of investing in publicly-traded real estate securities.
Nebraska's pension assets totalled $15.3bn at the end of 2007.