Kansas Public Employees Retirement System (PERS) has approved an additional $125m (€116.4m) to Morgan Stanley’s core open-ended US real estate fund.
Kansas PERS said it has committed the capital to the Morgan Stanley Prime Property Fund, a vehicle the pension fund has been investing in since 2004.
Kansas PERS valued its investment in the Prime Property Fund at $430m as of the end of last year. The Prime Property Fund’s net asset value was $26.7bn last year.
The Prime Property Fund produced a one-year time-weighted net return of 21.5% compared with the NFI-ODCE Proxy Median’s 21.4% return during the same period.
Prime Property Fund also beat out the ODCE returns for all the other time periods and including since inception.
The fund is over-allocated to industrial assets and has some exposure to non-traditional core property types including healthcare and self-storage assets.
As previously reported, Kansas PERS expects to invest around $400m in core real estate this year.
The pension fund has so far this year made a $65m commitment to EQT Exeter Industrial Core-Plus Fund IV and invested $125m into the CBRE US Core Partners fund.
To read the latest edition of the latest IPE Real Assets magazine click here.
