Gerding Edlen is planning to raise $450m (€388.6m) for its fourth real estate fund, according to a potential investor.
Connecticut Retirement Plans and Trust Funds (CRPTF) said in a meeting document that it intends to make a $75m commitment into the Gerding Edlen Green Cities IV fund.
As previously reported, the $34.2bn pension fund also considered a $50m commitment to Gerding Edlen’s Green Cities III. Green Cities III, closed in April last year with $416m in capital commitments, exceeding its $350m target.
Green Cities IV will be investing in value-add or opportunistic assets in the US. The fund targets a net internal rate of returns (IRR) of at least 13%.
The fund will mostly target apartment properties in cities like Portland, Seattle, San Francisco, Los Angeles, Chicago, Boston, New York City and Washington, DC.
Part of the fund’s capital will also target office properties.
Connecticut believes Gerding Edlen has been a strong performing manager in its previous funds.
Green Cities II - which CRPTF made a $30m commitment to in 2014 - sold three of its assets that it invested in, producing a 31.5% gross IRR.