Kansas Public Employees Retirement System (PERS) made a $60m (€55.3m) commitment to AEW Capital Management’s latest opportunistic US real estate fund.
The pension fund told IPE Real Assets that it had placed the capital into the AEW Partners Real Estate Fund X fund, but declined to comment on the fund.
Earlier this month, IPE Real Assets reported that AEW is seeking to raise $2bn for its latest opportunistic US real estate fund.
According to sources, the manager has already raised $750m prior to the commitment from Kansas PERS.
Fund X will be focused mostly on buying or developing a mixture of multifamily and industrial as well as life-science conversions. The fund is expected to invest in properties that can produce a net internal rate of return of 15%.
The commitment by Kansas PERS represents the pension fund’s first approved real estate commitment for 2023. Kansas PERS expects to invest up to $200m in non-core this year, according to the pension fund’s real estate pacing plan.
Private real estate accounts for 13% of the pension fund’s portfolio compared with an allowed range of 9% to 15%.
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