New York State Common Retirement Fund (NYSCRF) has approved a $200m (€199.6m) commitment to Noble Investment’s latest US hotel investment fund.
The pension fund told IPE Real Assets that the commitment to the Noble Hospitality Fund V fund “will lead to more diversification and capital needs, and depleted reserves combined with high loan-to-value loans in the post-pandemic arena are presenting attractive buying opportunities for hotels”.
According to sources, Noble Investment has already reached its $800m target for the fund and could reach its $1bn hard cap by the end of 2022 when the fund closes.
The fund, which will be investing in select-service and extended-stay hotels, targets an internal rate of return of 15% net and 20% gross with a 65% loan-to-value leverage component.
Noble Investment declined a request for comment.
NYSCRF said it has also made a $100m co-investment to invest in the renewable power sector alongside the $15bn ISQ Global Infrastructure Fund III fund.
“The CRF feels renewable power investments provide the potential for significant capital appreciation over the long term as institutions and countries look to decarbonise.
Investments into energy transaction assets also help the CRF reach its net-zero goals,” the pension fund said.
NYSCRF said it has placed €200m each into the DIF Infrastructure Fund VII and DIF Core Plus Infrastructure Fund III funds.
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