New York State Teachers Retirement System (NYSTRS) has approved three commitments worth $250m (€236.5m) in total to US real estate equity and debt.
The commitments include issuing $50m each into the Pennybacker VI and the Penwood Select Industrial Partners VII funds, and a $150m allocation to the Raith Real Estate Debt Separate Account, the pension fund disclosed in a meeting document.
Earlier this month, Penwood Real Estate Investment Management’s latest US value-add industrial fund closed with $425m in capital commitments.
The separate account with Raith Capital Partners, established in 2018 with a $200m allocation, is a non-discretionary relationship, meaning NYSTRS approves each transaction for the account.
The account targets a net internal rate of return of 8% and seeks transactions in investment grade and non-investment grade commercial mortgage-backed securitisation (CMBS), B-notes, senior mezzanine loans, and preferred equity.
NYSTRS has renewed its contracts with Heitman, Brookfield, AEW, and Dimensional Fund Advisors for global real estate investment trusts (REITs). It has also renewed its contract with Heitman for a mixed strategy of domestic REITs and real estate operating companies, and its contract with Prima Capital Advisors for US CMBS and private real estate debt.
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