Florida State Board of Administration (SBA) is investing $375m (€344.1m) in opportunistic real estate funds.
The pension fund told IPE Real Assets that it is committing $225m to the Cerberus Institutional Real Estate Partners V fund and $150m to the Trigate Property Partners IV fund.
According to Florida SBA, Cerberus Partners V, which is planning a $2bn fundraise, has now raised $640m of equity. The fund targets investments that can produce gross annual internal rate of return of 17% to 20% over a one- to five-year holding period.
TriGate IV has so far raised $414.75m and targets a $500m hard cap. The fund seeks investments where a net return of 15% and gross return of 18% can be achieved.
“Both of these managers take an opportunistic approach to real estate investing, focusing on stressed, distressed, and transitional assets across the capital structure and property types.
“The timing for both of these funds is ideal as they are able to take advantage of lower valuations in the real estate market,” the pension fund said.
Florida SBA also issued a commitment of $150m into the PAG Loan Fund IV. The fund, managed by PAG Asia Capital, makes investments in Asia that include some real estate investing in subordinated capital.