State of Wisconsin Investment Board (SWIB) is backing a new opportunistic managed Lionstone Investments as part of $331m (€293m) worth of new real estate investments.
According to a board meeting document, the pension fund has committed $125m to the Lionstone Raleigh Development Partners, which will invest in mixed-use assets in the US on an opportunistic basis.
Lionstone declined to comment, but SWIB told IPE Real Assets that the fund was ”attractive to the pension fund due to its compelling risk-adjusted returns”.
SWIB’s commitment could make up nearly a quarter of the fund’s capital-raising target, which has been set at $550m according to sources that track fundraising.
The pension fund has also approved a $100m commitment to the Hudson Single-Family Rental Fund, following a $150m commitment it issued in March last year.
SWIB said it made the additional commitment to the open-ended fund because it said the US single-family sector currently had “attractive fundamentals”.
SWIB has also invested $83m in the Crow Holdings Development Opportunities Fund I, which includes Illinois Municipal Retirement Fund among its investors and invests in various property types.
The pension fund has also invested $23m in the acquisition of a core apartment complex based in San Diego.
It is assessing a further $823m of potential commitments, $500m of which could be invested in industrial real estate funds, both open-ended core and closed-ended opportunistic vehicles.
A $150m commitment to a core-plus apartment fund is also being considered.