Oregon Public Employees Retirement Fund (PERF) has given Abacus Capital Group a further $400m (€368.7m) to invest in US apartments.
Oregon Investment Council disclosed in a meeting document that it has added $250m to the existing Abacus Multifamily Associates separate account and made a $150m commitment to the Abacus Multifamily Partners Value-Add Fund VI fund.
Oregon PERF established the separate account with Abacus in May 2020 with an initial $250m allocation. The separate account’s investments include two acquisitions on the West Coast in Bellevue and San Diego and one in Kansas City.
Tony Breault, senior investment officer for the Oregon State Treasury, which oversees the investments for Oregon PERF, said: “We didn’t want the manager to be forced to find a small deal to finish off the capital for the initial allocation and so we awarded them some additional capital.”
Oregon PERF expects the core/core-plus separate account, which will have a leverage amount of 45%, to produce an equity multiple of 1.5 to 2x.
According to sources, Abacus is seeking to raise $1.45bn for the Abacus Multifamily Partners Value-Add Fund VI fund to acquire garden-style apartments that can generate net internal rate of returns in the mid-teens range.
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