Pennsylvania State Employees Retirement System is investing $75m (€66.4m) in LEM Capital’s latest US multifamily fund, according to a board meeting document.
LEM Capital is seeking to raise between $350m and $450m for LEM Multifamily Fund VI and has committed $20m of its own capital.
The fund has a value-add strategy and will acquire and improve class-B multifamily properties in strong infill locations in markets including Seattle, Los Angeles, Dallas, Houston and South Florida.
It will focus on assets built between the late 1990s and early 2000s and with 200 to 400 units.
Target net returns are 12% to 15% with projected quarterly cash distributions to average 5% to 7% per annum.