NYSTRS creates $200m real estate debt account with Raith Capital Partners

New York State Teachers Retirement System (NYSTRS) has hired Raith Capital Partners for a $200m (€173m) real estate debt separate account, according to a board meeting report.

NYSTRS told IPE Real Assets: “It’s an opportunity for the retirement system to make investments at attractive risk-adjusted returns.

The separate account will target an 8% net return by investing in investment-grade and non-investment-grade commercial mortgage-backed securities (CMBS), b-notes, senior mezzanine loans and preferred equity.

Investments will be made in the US and are expected to range in size from $5m to $40m.

Transactions will be capped at a 75% loan to value based on appraisals.

The pension fund holds investment discretion, whereby each deal has be approved.

NYSTRS has also allocated an additional $300m of capital to two of its existing real estate fund managers.

It has allocated a further $150m to GCM Grosvenor to make debt and equity investments, and approved a $150m commitment to the Cabot Industrial Core Fund II.

The fund will focus on core industrial assets in top US industrial markets.

Cabot Properties has secured investment for the fund from other US pension funds, including Teachers’ Retirement System of Louisiana.

Related images

  • New York Central Park

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2467

    Asset class: Search for a broker (mainly ETFs).
    Asset region: Global.
    Size: 250m.
    Closing date: 2018-08-28.

  • DS-2468

    Closing date: 2018-08-24.

Begin Your Search Now