Virginia Retirement System has approved $317.5m (€2783.m) of new commitments to real estate.
The US pension fund will commit $150m to a Capri Capital Advisors and EGM joint venture in a new relationship, as well as $110m to Blackstone’s Highline Property Co-Investment Partners fund and $57.5m to the Fortress Japan Opportunity Fund III.
Capri Capital formed the US-focused joint venture with EGM last year. The latter typically invests in the office, industrial and retail sectors, targeting assets fully-let to single-tenants on 10-15 year leases.
Net leased properties typically produce a higher yield than most multi-let properties.
VRS capital will be invested through direct acquisitions, sale and leaseback or build-to-suit financing with forward commitments to purchase upon completion.
Deal size is $10m to $75m.
Blackstone, meanwhile, is selling off parts of an existing property portfolio from its US-focused Highline fund.
The commitment from VRS, which has no specified hard allocation for real estate, joins a $100m allocation from the State of Wisconsin Investment Board in the co-investment partnership.
The Fortress Group is still raising capital for Japan Fund III, an opportunistic investment strategy.
Deals for the fund will include placing capital in major property types, buying properties directly and acquiring distressed debt as well as investing capital in real estate operating companies.
