Tennessee Consolidated Retirement System (TCRS) has approved a $150m (€129.3m) commitment to a US senior housing fund managed by real estate investment trust Welltower.
The pension fund said it had committed the capital to Welltower Senior Housing Fund I, a fund with a $2bn hard cap target. The Abu Dhabi Investment Authority subsidiary is an anchor limited partner, committing $400m. Welltower and Welltower Management have also co-invested $400m in the fund.
According to TCRS the value-add fund, which will only be investing in existing assets, expects to generate gross internal rate of returns of 13% to 15%.
Fund I’s investment strategy involves acquiring private pay facilities offering independent living, assisted living and memory care.
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