Pennsylvania SERS puts $400m into core-plus real estate funds

Pennsylvania State Employees’ Retirement System (SERS) has approved a $400m (€353.8m) commitment into core-plus real estate funds managed by Henderson Park Capital and PGIM Real Estate.

In a meeting document, the $27bn pension fund said it is putting $300m into a new relationship with Henderson through the manager’s Park Enhanced Income Fund and a $100m into PGIM’s Senior Housing Partnership Fund VI.

According to the pension fund, Henderson Enhanced Income Fund will target gateway cities in Europe. The fund will focus on core-plus Western Europe commercial real estate properties.

PGIM’s Fund VI will target US senior housing assets that are private pay independent living and assisted living facilities, Pennsylvania SERS said.

According to sources that track fundraising, PGIM is at an early stage for the core-plus Fund VI and its target is unknown. The manager’s predecessor fund raised $629m at close in May 2015.

Fund VI is expected to target net internal rate of returns in the range of 9% to 13%, sources said.

Both Henderson and PGIM declined a request for comment.

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