Connecticut Retirement Plans and Trust Funds (CRPTF) is proposing to issue a $200m (€187.6m) commitment to a net lease fund managed Blue Owl Real Estate, according to the pension fund’s meeting document.
If the commitment is approved, CRPTF will place the capital into Blue Owl Real Estate Fund VI, a fund that targets industrial, retail and medical office investments mainly in the US and Canada.
According to the pension fund, as of the end of May this year, Blue Owl Real Estate had raised $3.7bn.
Blue Owl Real Estate is seeking to raise $4bn with a $5bn hard cap for the fund. The fund manager expects to make a co-investment of 1% of the total capital raised or $40m to the fund depending on which is lesser.
The fund will target a net internal rate of return of 12% to 14% as it invests in assets with a lease of at least 11 years.
CRPTF, which has a $500m real estate pacing plan for 2023, has so far issued $175m of commitments.
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