US public pension funds, the Los Angeles County Employees Retirement Association (LACERA) and the Illinois Municipal Retirement Fund, have expanded their real estate portfolios in Europe through $280m (€264.2m) in commitments to value-add funds.
LACERA has approved a $180m commitment to Angelo Gordon’s AG Europe Realty Fund IV and Illinois Municipal has made a €100m commitment to Ares European Property Enhancement Fund IV, the pension funds disclosed in their board meeting documents.
Angelo Gordon is seeking a $2.5bn total capital raise with a $3bn hard cap for AG Fund IV. The fund manager declined a request for comment.
According to LACERA, the non-core fund – which will target the UK, Western Europe and the Nordics – will be investing in a variety of property types. AG Fund IV will be investing in existing assets it can reposition or needs a recapitalisation. The fund will also consider some new development opportunities.
The Ares fund, which targets a variety of markets in Europe, will be investing in existing income-producing properties that have the potential for value enhancement in the future.
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