Oak Street secures $1.1bn for open-end net-lease property fund

Oak Street Real Estate Capital has raised $1.1bn (€976.7m) for its open-ended net-lease real estate fund, according to a potential investor.

The Connecticut Retirement Plans and Trust Funds (CRPTF) said in a meeting document that it is considering issuing a $100m commitment into the Oak Street Net Lease Property Fund.

CRPTF said the fund manager has another $500m of potential commitments in the pipeline that are projected to be included in the open-ended fund’s “founders close”.

Following the close, the manager expects to close the fund to new commitments for 12 to 18 months as it invests the seed capital.

Oak Street Capital did not respond to a request for comment.

The manager specialises in the area and its strategy tends to involve acquiring single-tenant US office, industrial and retail assets with long-term, inflation-linked leases.

The Net Lease Property Fund seeks to provide investors with a 7% annualised cash return and a 10% net internal rate of return over the life of the investment.

CRPTF said it would be placing its possible commitment for the Net Lease Property Fund into the non-core sector of its real estate portfolio.

The pension fund, which has a 50% non-core real estate sector target allocation, currently has 31.8% of its existing property portfolio invested in the sector.

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