Pennsylvania Public School Employees’ Retirement System (PSERS) has approved a $175m (€177.2m) commitment to Cabot Industrial Value Fund VII, a fund managed by Cabot Properties, the pension fund disclosed in a meeting document.
Cabot has a $1.5bn fundraising target and a $1.75bn hard cap for the fund which will mainly target assets in North America.
Cabot has the discretion to invest up to 30% of the fund’s capital outside of North America in European countries like the UK, Germany and the Netherlands as well as some Asian countries like Japan and Australia.
According to Pennsylvania PSERS, the industrial real estate sector maintains a stable long-term outlook as a result of continued population growth, increasing e-commerce adoption across industries, favourable macroeconomic trends driving demand for functional warehouse space and liquidity at exit.
The pension fund also approved a $125m commitment to the DRA Growth and Income Master Fund XI fund.
The fund’s manager, DRA Advisors, is seeking to raise $2.25bn for the fund which targets residential, industrial, office and retail assets in the US.
The fund is expected to acquire operating assets at a discount to replacement cost as it capitalises on inefficiencies in the real estate markets.
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