Pennsylvania Public School Employees Retirement System (PSERS) has issued a $100m (€85.1m) commitment to a US multifamily real estate fund managed by LEM Capital.
The pension fund disclosed in a board meeting document that it has committed the capital to LEM Multifamily Fund VII, a fund seeking to raise $500m with a $700m hard cap.
LEM is expected to commit the lesser of $10m or 2% of the fund’s total capital. Fund VII targets Class B workforce housing in major US infill markets, mainly in the South and West regions.
LEM is expected to implement a value-add programme involving renovations and management optimisation to increase rents across Fund VII’s portfolio.
Pennsylvania PSERS has made a $150m commitment to Cabot Industrial Fund VIII.
The Cabot Properties fund, which has a $1.75bn target and a hard cap of $2.25bn, acquires and develops value-add industrial properties.
Cabot is expected to provide a co-investment equal to 2% of the fund’s total fund commitments.
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