Maryland State Retirement and Pension System (SRPS) has approved a $100m (€91.9m) commitment to Heitman’s latest North American value-add fund.
The pension fund disclosed in a meeting document that it placed the capital into Heitman Value Partners VI.
Last month, IPE Real Assets reported that Heitman, which seeks to raise $2bn, had secured an initial $500m in capital commitments for Fund VI as of 20 February, adding that the manager expected to raise an additional $300m this month.
The size of Maryland SRPS’s commitment, its timing and its history as a legacy investor, qualifies the pension fund for a 47% fee reduction.
The investment gives Maryland SRPS access to a wider range of property types. These property types, such as self-storage facilities, single-family rentals and medical office buildings, are already familiar to the pension fund.
Fund VI may invest its capital through partnerships with various real estate entities including both publicly traded real estate investment trusts and private real estate operating companies.
The fund targets a net internal rate of return in the range of 12% to 14%.
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