REAL ESTATE- The New Jersey Division of Investment has placed a total investment of $150m (€117.9m) into two commingled funds.
The largest of the two investments was a $100m commitment into the RREEF Global Opportunities Fund II. This closed-end fund is managed by the real estate opportunities group of Deutsche Bank.
The commingled fund looks at transactions in three major regions of the world. Around 50% to 55% of the transactions will be in Europe. Deals in Asia will constitute another 20% to 25%. The balance will be in the Americas.
Deutsche Bank will be going after a variety of transactions. These include buying single assets or portfolios, international joint ventures, private equity platform investments and entity recapitalizations.
Global Opportunities Fund II should have a total raise of around $1.5bn. The money raising on the fund should be complete by June. The projected return to investors is at least 20%.
The fund has a significant co-investment from the fund manager. There is a $100m investment from Deutsche Bank. There is another $10-$15m from the employees of the manager.
New Jersey has made a $50m commitment to the CIM Urban REIT. This commingled fund is managed by The CIM Group.
This investment will be the fund’s first move into a core plus investment strategy. The commingled fund looks to acquire substantially stabilized core assets that are located in urban areas across the country.
The fund manager has qualified 72 urban communities across the country for possible transactions. Four of these are in the PF’s home state. These are Newark, Harrison, Long Branch and Jersey. This means there is a good chance that some of New Jersey’s pension fund capital will be invested in its own state.
The target size of the commingled fund is $2bn. It should be closed by the end of June. The fund manager will be making a $20m co-investment to the fund. The property types considered for the fund are apartments, retail, office, parking and mixed-use.