Basis Investment Group is expected to have a $400m (€328.4m) first close for its latest US real estate fund, according to a potential investor.
The Connecticut Retirement Plans and Trust Funds (CRPTF) said in a meeting document that it intends to make a $125m commitment to the BIG Real Estate Fund II fund.
CRPTF made previously issued a $65m commitment to BIG Real Estate Fund I, Basis Investment Group’s debut US real estate fund which raised $410m in May 2019.
Fund II has a targeted capital raise of $550m with a $750m hard cap.
The fund will target net internal rate of returns of 9% to 11% and will fund acquisitions, refinancings and recaps of multifamily, office, hotel, industrial and retail assets.
CRPTF’s real estate consultant NEPC said in the meeting document that the pension fund is expected to make $200m worth of non-core real estate fund commitments for this year.
CRPTF’s investment plan for the period could also include making additional capital into real estate investment trusts and implementation of a co-investment programme within its $2.4bn real estate portfolio.
CRPTF is also planning to scale back its re-investing dividends for the core and core-plus funds as the pension fund approaches its 10% target to real estate.
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