NORTH AMERICA – The New Jersey Division of Investment has approved new real estate commitments totalling $300m (€221.3m).
One of the new investments was a $200m allocation to Northwood Real Estate Partners, LP Series IV.
Northwood has invested approximately $2.1bn of equity and achieved a 17% gross IRR and a 2.3x gross multiple on invested capital.
The real estate manager has a focus on the major metropolitan areas of the US and super-regional markets in Europe.
The opportunistic fund is structured to invest in multiple property types and across the capital structure, using either debt or equity.
The property types include office, residential, retail and hospitality.
The real estate manager will invest in both properties and complete investments in real estate-related companies.
The deals must have upside potential through capital appreciation or repositioning.
New Jersey previously made a $75m commitment to Northwood Real Estate Partners Series III and a $75m allocation to Northwood Real Estate Co-Investors in December 2012.
The pension fund’s other new commitment was a $100m allocation into the Hammes Partners II commingled fund, which invests in healthcare real estate.
New Jersey was joined in the fund by the New Mexico Educational Retirement Board, which approved a $25m commitment.
The investment fund will be the first such product for the Hammes Company, although it does have a significant track record investing in healthcare-related real estate.
Prior to the creation of the fund, it invested in 28 transactions covering 42 buildings with aggregate invested capital of more than $590m.
The past investments show a 22% net IRR, with a 1.8x multiple of invested capital through the end of last year.
Hammes will be looking at a total equity raise of $300m, investing in healthcare-related real estate in the US, including medical office buildings and ambulatory centres.
