New York State Common Retirement Fund (NYSCRF) has taken $600m (€505.7m) out of its fixed-income portfolio to be used as a primary loan for a US office property the pension fund owns.

The $254.8bn pension fund said the capital being transferred will be used as a first-mortgage lien on the 390 Madison building in Manhattan.

NYSCRF acquired the 390 Madison asset for $191.3m in June 1997 in a joint venture with an unnamed European public pension fund. NYSCRF bought out its partner’s 49% stake in November 2012.

The pension fund valued the fully-let 931,750sqft building at $1.3bn in its 2020 financial report.

Clarion Partners is NYSCRF’s separate account adviser on the property which is managed by L&L Holding.

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