New York State Teachers’ Retirement System (NYSTRS) has invested $370m (€353m) in EDENS, increasing its ownership of the operator of shopping malls to about 40%.
NYSTRS has been investing in EDENS since 2000. The decision to increase its stake in the company coincided with the sale of another shopping-centre platform, Donahue Schriber, by NYSTRS and JP Morgan Global Alternatives, as reported last month.
“On a net basis, NYSTRS is actually reducing its retail exposure with the sale of the Donahue Schriber platform,” the $148bn pension fund told IPE Real Assets.
“Nearly all of our retail exposure remains in the grocery-anchored neighbourhood centre space, which has continued to have strong market fundamentals.”
NYSTRS said the sale of Donue Schriber to First Washington Realty generated a net internal rate of return 9.6% and a 2.5x equity multiple.
NYSTRS also revealed it had made a number of commitments to real estate funds, including a €270m investment in Aermont Capital Real Estate Fund V, which invests in Europe.
“We believe European assets provide a value opportunity in this part of the cycle,” NYSTRS said.
“Aermont has a history of finding unique and successful opportunities irrespective of the market.”
The pension fund also committed $150m to Cabot Industrial Core Fund III, $100m to Artemis Fund IV and $83m to the BentallGreenOak US Cold Storage investment partnership.
