CapMan Real Estate expects to close its third Nordic value-add fund in the current quarter, according to an investor’s meeting document.
The Los Angeles County Employees Retirement Association (LACERA) said it has approved a €75m commitment to the CapMan Nordic Real Estate Fund III fund, an investment the pension fund expects will allow it to continue to build up its international real estate portfolio.
On a long-term basis, the LACERA wants its international real estate portfolio make up 15% of its total real estate portfolio. The latest commitment to CapMan lifts LACERA’s 9.4% real estate portfolio to 11.1%.
Amit Aggarwal, an investment officer with LACERA said in a meeting document that the CapMan Nordic Real Estate Fund III fund’s hard cap target was increased last year from €425m to €550m.
LACERA also disclosed it has completed the sale the 392-unit Instrada Nomad complex in New York City to Global Holdings Management for $381m (€314m).
John McClelland, principal investment officer in real estate for LACERA, told IPE Real Assets that “this sale is part of the strategic decision to cull the real estate portfolio of most of the individual separate account assets that exceed $100m (€82.8m) in net equity value.
“The rationale for this decision was to decrease risk by reducing individual asset exposure, preferring instead to diversify more.”
The pension fund acquired the apartment complex in December 2012 for $301m.
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