Pennsylvania Public School Employees Retirement System has become a limited partner in the WCP NewCold III cold-storage commingled fund with a $150m (€144m) commitment, according to the pension fund.
The investment is the first time Pennsylvania Public School has awarded capital to fund manager Westport Capital Partners. The fund manager is planning a co-investment into the fund of around $185m, Pennsylvania Public School added in a board document.
Pennsylvania Public School has so far had minimal exposure to cold-storage assets.
NewCold III will invest in existing assets and developments. Current assets held by Westport Capital total 14 properties with a new development pipeline of 31 potential buildings.
Should all of the new development projects be constructed, the overall portfolio held by the manager would be split, with 50% in North America and 50% across Europe and Asia.
Pennsylvania Public School is developing a new strategy for investment in cold storage assets. It added, in the board document, that the general ageing of existing assets for cold storage leads to a supply-demand imbalance that can best be addressed through the development of efficient automated facilities.
With the latest commitment, the pension fund approved $450m of real estate commitments last year – short of the pacing range planned for the year of $800m to $1bn.
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