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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