New Jersey Division of Investment has proposed a $150m (€130m) commitment to the Focus Senior Housing Core Strategies fund.
According to a pension fund board meeting report, the fund is being established by Focus Healthcare Partners to recapitalise a 16-property, 2,863-unit senior housing portfolio spread across the US. These assets are owned by the other funds managed by Focus Healthcare Partners.
NJ Division of Investment said the portfolio was well suited for a long-term hold, with an average vintage of 2020 and approximately 77% of the units for independent living, which have tended to exhibit lower volatility.
Focus Healthcare Partners has set an $800m fundraising target for the fund, according to NJ Division of Investment. The target returns for the fund are 9-10% net.
The investment will form part of NJ Division of Investment’s core real estate portfolio and will increase its exposure to healthcare-related real estate, which the pension fund said was an area of high conviction due to the demographic tailwinds backing the sector.
NJ Division of Investment is also considering a $150m investment in Cerberus Institutional Real Estate Partners VII, a fund that targets non-performing loans and distressed situations globally.
According to NJ Division of Investment, the target internal rate of return for the fund is 13-16% net and Cerberus is seeking to raise $3bn.
