North Dakota Retirement and Investment Office has made $185m worth of real estate commitments to Carlyle’s opportunistic real estate fund and PGIM Real Estate’s latest open-ended fund, PRISA III.
The pension fund disclosed in a meeting document that it has committed $100m to Carlyle Realty Partners X, a fund seeking to raise $8bn with a hard cap of $10bn.
Carlyle intends to co-invest an amount equal to 3% of the fund’s total commitments. The Carlyle fund, which currently holds no assets, targets investments in residential, self-storage and industrial properties.
Partners X expects to generate a net internal rate of returns (IRR) of 14% to 17%, with at least 95% of investments in North America and the remainder potentially allocated to other regions.
North Dakota Retirement committed $85m to PRISA III, which has a current net asset value of $2.9bn and no redemption queue.
PRISA III expects to generate net IRRs of 9% to 12% with 45.1% leverage.
The fund invests in traditional assets like apartments and industrial, and non-traditional assets like single-family rental, manufactured/student housing and self-storage, with new development projects currently representing 27% of the fund.
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