New York State Common invests $350m in UBS Trumbull fund

New York State Common Retirement Fund has expanded its exposure to core real estate by making its first-ever investment in the UBS Trumbull Property Fund.

The pension fund said it had committed $350m (€322m) to the $19.8bn open-ended vehicle.

The revelation comes the same week that IPE Real Estate reported that the Oregon Public Employees Retirement System had invested in the Morgan Stanley Prime Property Fund.

Both funds are part of the $174bn NCREIF Open End Diversified Core Equity (ODCE) index. Funds in the index had began to experience net outflows last year.

New York Common told IPE Real Estate it expected its capital commitment to the UBS fund to be called in the next 12 months due to an entry queue worth $415m.

The pension fund is projecting returns of 6-8% from the fund, which invests in core office, industrial, retail and apartment assets.

UBS Asset Management was not available for comment.

New York Common has also set up a vehicle with GreenOak Real Estate so it can co-invest $200m alongside the GreenOak US III real estate fund.

The pension fund said this would give it access to opportunistic returns with a value-add risk profile, at fees it believed were below market rate.

It said each of GreenOak’s previous US funds generated top-quartile returns and it was targeting returns of between 15% and 18% from the investment.

GreenOak US III invests in office, multi-family, retail and lodging in Boston, New York City, Washington, DC, Miami, San Francisco and Los Angeles.

GreenOak did not comment.

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