Los Angeles Fire & Police Pensions (LAFPP) has issued a $40m (€37.4m) commitment to Jadian Capital’s latest US real estate fund, marking the first time the $31bn pension fund has selected the real estate manager.
LAFPP disclosed in a meeting document that the capital, which was made via its non-core real estate strategy, had been placed into the Jadian Real Estate Fund II, a fund that will be investing in niche property types. As of the end of last year, real estate accounted for $3.1bn or 10.3% of the pension fund’s portfolio, slightly above the 10% allocation target.
As previously reported, the Jadian Capital fund, which also secured a $100m commitment from New Mexico State Investment Council, is seeking to raise $600m to invest in assets like industrial outdoor storage, commercial self-storage, and land-lease communities like manufactured home sites, and hanger real estate such as aircraft parking.
The fund hopes to find transactions that can produce net internal rate of returns in the mid-teens range over a 10-year time period.
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