Indiana Public Retirement System is expanding its US real estate portfolio by committing $75m (€65.1m) each into a healthcare property fund managed by Hammes Partners and an apartment fund managed by Abacus Capital.
The pension fund disclosed in a board meeting document that has backed the Hammes Income & Growth Healthcare Fund and the Abacus Multi-Family Partners VII funds.
The Hammes Partners’ core-plus open-ended fund, which had an initial target of $350m, closed at $445m at the end of August, including the pension fund’s commitment.
Hammes Income & Growth Healthcare will be investing in medical office buildings, ambulatory care centres and other healthcare real estate assets.
According to existing investors, the fund targets annualised gross returns of 8% to 10% and expects leverage to be 40% to 50% of gross asset value.
Abacus Multi-Family Partners VII, a value-add fund, aims to raise $2bn to invest in garden-style apartments.
The fund’s strategy is to acquire, develop, reposition and manage multifamily properties.
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