San Diego County Employees Retirement Association has approved a $250m (€217.4m) commitment to a core-plus open-ended US real estate fund managed by Hines.
The pension fund disclosed in a meeting document that it placed the capital into the Hines US Property Partners (HUSPP) fund. It has set a long-term target size for the fund of $10bn.
As of the first quarter of 2025, HUSPP’s capital commitments had reached, with total gross assets value at $2.6bn. The fund has a long-term target size of $10bn.
The fund’s manager Hines has co-invested $100m of its own capital into the fund. The fund targets net annualised returns of 9% to 11%, which are projected to be generated equally from current income and value creation through income growth, asset stabilisation and select development.
San Diego County’s commitment to HUSPP is subject to a two-year lock-up period before it can redeem capital.
HUSPP currently has a $95m entry queue and no redemption queue. The fund also holds around $1bn in dry powder.
Hines intends to invest the fund’s capital across industrial, living and alternative property sectors like self-storage, healthcare and data centres.
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