State of Michigan Retirement System has made its first real estate commitment of the year, allocating $75m (€63.9m) to a retail property fund managed by Asana Partners.
The $97bn pension fund disclosed in a meeting document that it has committed the capital to Asana Partners Fund IV, a fund reportedly seeking to raise $1.5bn.
The commitment represents Michigan Retirement’s first new real estate deal closed in 2025, a year during which the pension fund expects to have a reduced overall allocation for real estate and infrastructure.
The pension fund previously lowered its retail real estate exposure, with the portfolio’s value decreasing from $393m or 4% of its total real estate portfolio in 2024 to $239m or 2.5% in 2025.
Michigan Retirement expects Asana’s latest fund to target necessity/neighbourhood retail in many markets across the US.
The value-add fund is looking for transactions that can produce a net internal rate of return of 11% to 14%.
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