Connecticut Retirement Plans and Trust Funds (CRPTF) is considering making $450m (€432.1m) worth of real estate commitments, according to the pension fund’s board meeting document.
The meeting document shows that CRPTF is considering placing $200m into BIG Real Estate Fund III, a value-add US real estate credit fund managed by Basis Investment Group, and a $250m investment into a fund-of-one structure with GCM, known as the GCM/CRPTF Real Estate Small and Middle Market Fund.
Fund III will target transactions across the capital stack with a net internal rate of return (IRR) between 8.5% and 10% and cash-on-cash returns of 8% to 10%.
The fund will provide senior mortgages, floating-rate bridge loans and mezzanine loans.
The GCM fund-of-one will target niche and middle-market real estate opportunities through investments in established smaller funds, typically around $600m.
These niche sectors include truck and outdoor storage, construction lending, opportunistic development, build-to-rent, hospitality and special situations. The fund-of-one targets net IRRs of 12% to 15%.
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