Teachers’ Retirement System of Louisiana has issued a $125m (€115.4m) commitment to US Industrial Club Fund VII, provided the committed capital stays below 10% of the total amount Hillwood Investment Properties is seeking to raise for the fund.
Hillwood Investment Properties is planning to raise $1.25bn for the North American industrial and logistic property fund which has no hard cap. The manager raised $840m in 2021 for the previous fund in the series.
The value-add Club Fund VII targets mid-market properties with the potential for improvement. The fund plans to invest additional capital in the assets, boost leasing activity and enhance asset management.
The fund, which expects to make 42 investments in total by investing between $5m and $100m, will utilise moderate leverage, with a maximum of 65% allowed at the individual property level.
The equity invested for each transaction for Club Fund VII is projected to be between $5m and $100m.
Club Fund VII plans to hold onto its investments for 3-5 years.
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