New York State Common Retirement Fund (NYSCRF) has made about €504m worth of new commitments to European real estate funds.
The pension fund said it is committing £200m (€221m) to the PGIM Real Estate Capital VII debt vehicle, €200m to the Exeter Europe Industrial Core fund and $100m (€85.3m) to the AEPEP III N Strategic Co-Invest fund.
NYSCRF told IPE Real Assets that it believes that the PGIM Real Estate managed fund, which targets mezzanine debt investments in major European countries, can “achieve attractive returns in the current environment”.
The PGIM fund will be looking to find investments that can produce net returns to the limited partners of 12%, according to NYSCRF.
PGIM Real Estate declined a request for comment.
The Exeter industrial fund expects to achieve net internal rate of returns of 10% to 12%.
“In general, Europe has not yet adopted e-commerce to the same extent that the United States has, and as that adoption increases, we anticipate that the demand for modern, high-quality industrial space will accelerate,” the pension fund told IPE Real Assets.
The Exeter fund will either be buying existing industrial assets or getting involved in forward-funded build-to-suit projects.
NYSCRF said the commitment to the AEPEP III fund will be placed alongside Ares European Property Enhancement Partners III, a value-add fund in which the pension fund issued a €318m commitment to in March this year.
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