State of Michigan Retirement System has placed a $100m (€93.1m) commitment each into BentallGreenOak and Rialto Capital Management real estate funds, according to the pension fund's board meeting document.

State of Michigan Retirement has invested the capital in the BentallGreenOak Asia IV and the Rialto Real Estate Fund V Debt funds.

According to an SEC filing BentallGreenOak, which is raising an unknown amount for its fund, had raised $759m as of the end of January this year.

State of Michigan Retirement said Asia IV is expected to target office, logistics, residential and hotel assets in Japan.

SEC filing shows that Rialto Capital had raised $1.8bn for its real estate debt fund as of the end of last month.

The real estate debt fund will target various credit opportunities, including distressed debt, non-performing loans, and junior capital structures like mezzanine and commercial mortgage-backed security.

State of Michigan Retirement's combined real estate and infrastructure portfolio, valued at $9.8bn as of the end of March 2024, returned -0.7% annualised over the past year compared with the NCREIF NPI benchmark's  -8.7% return over the same period. 

Detroit, Michigan

Source: Pexels

The pension believes its overweight allocation to hotels, its underweight position in offices and its exposure to infrastructure and real estate investment trusts may have contributed to it outperforming the benchmark.

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