Alaska Retirement Management Board (ARMB) has approved a $75m commitment each into US real estate debt funds managed by Walton Street Real Estate Capital and Heitman.
The pension fund said it has placed the capital into the open-ended Walton Street Real Estate Core Debt Fund and the Heitman Real Estate Debt Partners III fund.
As previously reported, the pension fund had disclosed it was creating new real estate allocations for non-core and debt as part of a review of its real assets portfolio.
Callan, ARMB’s investment consultant, had proposed that a 5% allocation for both real estate debt and non-core real estate should be created within the pension fund’s real assets portfolio.
As of October, the Walton Street fund had raised $462m according to SEC filing. The fund targets a mix of stabilised and near-stabilisation assets. It will provide both floating and fixed-rate loans for properties across the US.
Heitman aims to raise $1bn for the Partners III fund, which targets properties in primary and secondary US markets.
The fund will provide a mix of subordinated debt, senior bridge loans, and senior construction loans, targeting sectors such as multifamily, single-family rental and self-storage assets.
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