New Jersey Division of Investment (DOI) is proposing a $100m (€86.6m) commitment to Hillwood’s US industrial real estate fund, according to the pension fund’s board meeting document.
The pension fund plans to back the Hillwood US Industrial Club VII, a fund with a $1.5bn hard cap.
New Jersey DOI disclosed in the board document that the fund is expected to have a general partner commitment of $62.5m, representing 5% of the targeted size.
The pension fund has placed the commitment to Club VII, which targets net returns between 14% and 16%, within its value-add real estate portfolio.
Club VII’s strategy is to construct a diversified portfolio of institutional-quality US industrial assets through a mix of one-off acquisitions and ground-up developments, with transactions projected to range from $5m to $35m per investment.
Hillwood declined a request for comment.
According to New Jersey DOI, its real estate plan for 2026 and beyond involves focusing on demographic-driven assets with low economic correlation; utilising partnerships to capitalise on opportunities in the current fundraising environment; and capitalising on real estate credit disruption for higher-priority, near-equity returns.
To read the latest IPE Real Assets magazine click here.
