City of Fresno Retirement Systems (CFRS) is investing in European core-plus real estate via a fund managed by Tristan Capital Partners.
The pension fund said in a meeting document that it has issued a €50m commitment to Tristan Capital’s open-ended Curzon Capital Partners Long-Life 5 (CCP 5) fund.
CFRS said the investment with Tristan Capital allows the pension fund to initiate a relationship with a “high-conviction” manager that is well-positioned to execute their strategy with numerous resources and tools at their disposal.
The CCP 5 fund currently has a gross asset value of €3bn, according to the pension fund.
The fund’s portfolio comprises 52% offices, 28% industrial, 11% residential, and 4% retail assets with other property types making up the remaining 5% of the portfolio. The leverage amount planned for the fund is in the range of 40% to 45%.
The CCP 5 fund, which seeks mid-market size transactions, targets a 9% to 11% net internal rate of return.
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