Connecticut Retirement Plans and Trust Funds (CRPTF) intends to make a $100m (€91.4m) commitment to Penwood Real Estate Investment Management’s latest US industrial value-add fund.
Erick Russell, Connecticut State Treasurer, said in the pension fund’s meeting document that the capital is expected to be placed into the Penwood Select Industrial Partners VII fund once approved. No timetable has been set for the approval.
The proposed commitment would represent CRPTF’s first-ever real estate investment with Penwood.
CRPTF, which is currently undergoing a re-balancing of its core real estate portfolio, recently sold a $70m industrial asset from a core separate account managed by American Realty Advisors.
As part of the re-balancing, the pension fund issued $700m worth of redemptions from six core/core-plus funds. CRPTF has so far received around $60m of the requested capital.
The funds affected by the rebalancing are Ares Real Estate Enhanced Income Fund, Barings Core Property Fund, Trumbull Property Fund, Trumbull Property Growth & Income Fund, Trumbull Income Fund and USAA Eagle Real Estate.
The pension fund is also planning to transfer its existing separate accounts, set to expire next year, to Artemis Real Estate Partners. The accounts comprise a $275.5m portfolio with American Realty Advisors and a $551.5m portfolio held by Hart Realty Advisors.
The properties from the separate accounts are expected to be placed into a fund-of-one relationship with Artemis being created to help prepare the assets for disposition.
The capital from the sales is expected to be reinvested in the future.
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