The State of Michigan Retirement System is investing in US single-family rental communities through a new separate account with Cerberus Capital Management.

State of Michigan said in a meeting document that it has allocated $100m (€95.1m) to the SFR CM limited partnership with Cerberus.

Single-family rental accounts for $209m of the pension fund’s $8.8bn real estate portfolio. Apartment assets make up $3bn of the real estate portfolio.

The commitment to the separate account is part of $350m of new real estate commitments State of Michigan approved for the second quarter of this year, the pension fund stated in the board meeting document.

The other commitments are a $150m investment into the TPG Real Estate Partners IV fund and a $100m commitment to the Asana Partners Fund III fund.

TPG Real Estate Partners is planning to raise $5.5bn for Partners IV. The opportunistic fund is expected to target a mixture of office, industrial, residential, senior housing, life science, hospitality, student housing, retail and self-storage assets across North America and Europe.

Asana Partners recently raised $1.5bn for Fund III, its latest value-add real estate fund focused on repositioning mixed-use assets in the US.

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