New York State Common Retirement Fund (NYSCRF) has approved $500m (€454m) of capital for two real estate separate accounts managed by JP Morgan and Ellis Partners, respectively.
The pension fund said in a transaction report that it made a $300m commitment to the JPM Star Lake Fund III, in which it is the only investor.
NYSCRF committed $291m to Star Lake Fund II in 2014 following a commitment of $285m in 2008 to create the initial fund.
Star Lake Fund III will target core and non-core US office, industrial, retail and apartment investments that can produce gross levered returns of 9% to 11%.
The $210.5bn pension fund told IPE Real Assets that “JP Morgan, through its investment strategy and team, have proven successful in delivering attractive returns to investors over multiple economic cycles”.
NYSCRF said it is also committing $200m to EPNY Ventures I, managed by Ellis Partners.
The pension fund began investing with Ellis Partners through its emerging manager programme in 2012, and it has now created a direct relationship with the company.
“Through this programme, the pension fund has indirectly invested with Ellis in five projects in the San Francisco Bay Area that have significantly exceed return expectations,” NYSCRF said.
The venture will buy core office, industrial and retail assets in the San Francisco Bay Area, targetting gross returns of 8% to 10%.
