New Mexico State Investment Council (SIC) has approved to rescind its decision to redeem its $98.9m (€88m) from Berkshire Group’s open-ended core multifamily fund.
On recommendations of real estate consultant The Townsend Group, New Mexico has decided it will no longer redeem out of the Berkshire Multifamily Income Realty Fund, a decision which enables it to receive a fee discount if the Berkshire fund misses its benchmark.
The Berkshire fund is offering the fee break to investors who agree to an 18-month lock-in agreement in a bid to cut down on the redemption queue and raise additional capital for the fund.
According to New Mexico SIC, the Berkshire fund’s outstanding redemption queue represents nearly 50% of the fund’s $640m net asset value.
New Mexico SIC has also decided to delay its $100m commitment to the Cortland Growth and Income Fund. The sovereign wealth fund had approved the commitment in January of this year.
Townsend said the commitment will be funded at a later date given the ”potential of re-pricing of assets” in the fund.
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