New York State Teachers’ Retirement System (NYSTRS) is allocating $600m (€568.3m) to two newly formed US real estate debt separate accounts.
The pension fund disclosed in a meeting document that it has awarded Artemis Real Estate Partners and FCP $300m each to create the new debt separate accounts.
The separate accounts will be focused on bridge and mezzanine loans.
The $135bn US state teachers pension fund told IPE Real Asset that: “Our focus has been on floating rate debt that moves up even with rate increases in the market.”
NYSTRS currently has a $7.6bn commercial real estate debt portfolio, representing 5.4% of the pension fund’s total investment portfolio compared with a 6% target allocation for the strategy.
During the first quarter of the year, the pension fund’s debt portfolio recorded returns of 0.3% and posted an 8.1% return since its inception.
NYSTRS also approved a $100m new commitment to BlackRock to invest in commercial mortgage-backed securitisation.
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