North Carolina Retirement Systems has bolstered its real estate portfolio with $216m (€199.1m) worth of new separate account investments, according to the pension fund’s board meeting document.
The pension fund has placed $75m into its US real estate relationship with RXR Realty and made a $141m investment into NorthRock IV, a $573m relationship with Rockwood Capital.
The pension fund created the RXR NC Development Partners separate account relationship in January last year with an initial $200m commitment. North Carolina Retirement holds a 99% ownership stake in the account, with RXR owning the other 1% interest as the manager of the venture created to invest in mixed-use real estate development projects.
The investment into NorthRock IV, an account started in 2015, was used to settle outstanding debt on specific assets within the separate account.
North Carolina Retirement’s separate account investments are in line with the pension fund’s plan to focus on fewer managers, reducing costs and maximising returns through partnerships.
Additionally, the pension fund is seeking to increase exposure to public real estate investment trusts, where current security prices offer an attractive entry point due to trading below net asset value.
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