Oak Street Real Estate Capital is seeking to raise $4bn (€4.1bn) for its latest US value-add real estate fund, according to the Pennsylvania State Employees’ Retirement System’s (SERS) meeting document.

Pennsylvania SERS disclosed it has approved a $75m commitment to Oak Street Real Estate Capital Fund VI, a triple net-lease fund.

According to the pension fund’s meeting document, the Oak Street fund is expected to have a first close this month with a final close by the end of the year.

The fund is expected to target a net internal rate of return of 12% to 14% over the long-term and a minimum annual net cash yield of 8% utilising 60% leverage.

Oak Street declined a request for comment.

Pennsylvania SERS will be issuing a new request for information for a real estate investment consultant. A final decision on the search is expected to be made in March of 2023.

NEPC’s contract as the pension fund’s current real estate investment consultant is expected to expire on 1 December 2023.

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