Connecticut Retirement Plans and Trust Funds (CRPTF) considering making a $100m (€86.2m) commitment to Cityview Real Estate Partners VII, a US multifamily and mixed-use property fund.
The pension fund said in a meeting document that Partners VII has a $400m fundraising target with a $500m hard cap.
According to CRPTF, Cityview started the capital raising during the first half of last year but suspended the fundraising due to the coronavirus pandemic. The manager re-commenced marketing of the fund this year and expects to hold a $125m first close by the end of the year.
Partners VII is expected to have approximately 60% value-add and 40% development, CRPTF disclosed in the meeting document, adding that the fund targets a 12% and 18% net internal rate of returns depending on the risk level of the investment.
The leverage component of the fund will be 65% loan-to-value on a portfolio-wide basis.
The fund’s manager Cityview did not respond to a request for comment.
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