Pennsylvania State Employees Retirement System (SERS) has issued a $100m (€86.1m) commitment to Blue Owl Capital’s latest net lease real estate fund.
The $39bn pension fund said it has committed the capital to Blue Owl Real Estate Fund VII, a fund seeking to raise $6.5bn to invest in the US and Canada.
Fund VII, which is expected to close in 2026, targets an 8% monthly annualised distribution yield, a yield the fund series has successfully delivered to investors since 2009.
The fund will mainly target industrial assets, alongside some office and retail.
According to sources, the fund has the flexibility to commit 20% to 30% of its capital to data centres.
Pennsylvania SERS placed its commitment to Fund VII in its value-add real estate sector, which constitutes 48% of the pension fund’s entire $2.2bn real estate portfolio.
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