Angelo Gordon & Co’s second European real estate fund is close to reaching its fundraising target and has a number of deals lined up, according to Los Angeles County Employees Retirement Association (LACERA).
Last month IPE Real Assets reported that Angelo Gordon planned to raise $750m (€842m) for AG European Realty Fund II.
LACERA, which is planning invest $50m in the fund, said in a board meeting report that Angelo Gordon had raised $550m of equity and expected a further $150m to come in soon. The fund will be capped at $800m.
The pension fund expects to seek approval for its commitment next week.
The Angelo Gordon fund has already bought an office complex in Copenhagen for DKK78m (€10.5m), which it plans to redevelop into student housing units, LACERA said.
It has also acquired two office buildings in Amsterdam for €7.9m and, according to LACERA, has five other deals pending worth a combined $130m.
The deals are a UK logistics asset, logistics and self-storage in Italy, and a retail/logistics asset and office portfolio in the Netherlands.
The commitment to the fund by LACERA is part of the pension fund’s medium-term goal to invest up to $600m in international real estate. The investment plan aims to increase the real estate portfolio’s international weighting from 7.2% to 15%.
LACERA and its real estate consultant The Townsend Group have identified 10 funds in Europe for possible investment.
They include the Angelo Gordon fund and CapMan Nordic Fund II, which the pension fund made a €50m commitment to last year.
LACERA is still reviewing three of the remaining eights funds for a possible commitment.