The State of Wisconsin Investment Board and Essex Property Trust have launched the latest in a series of 50/50 joint ventures targeting US apartments.
The pension fund and the real estate investment trust (REIT) will each provide $80m (€58m) of equity for WESCO IV, the fourth in a series of joint ventures.
The capital will be used to acquire core apartment complexes in markets where Essex already has a significant presence, such as Seattle, and northern and Southern California.
SWIB has invested a total of $378m with Essex since 2011.
WESCO IV will form part of SWIB’s core real estate portfolio.
Tennessee Consolidated Retirement System is planning to invest in a value-added industrial real estate fund.
The pension fund has a $50m pending commitment to the Exeter Industrial Value Fund III, a vehicle for which Exeter Property Group is hoping to raise $675m from investors.
The fund will invest in existing industrial assets and developments in the main distribution regions of the US.
The fund is targeting gross returns of 10% and leveraged returns of 13-14%.
The investment will form part of Tennessee Consolidated’s non-core real estate portfolio. The pension fund only invests in non-core assets through commingled funds.
Tennessee Consolidated’s investment policy calls for 30% of its total real estate portfolio to be invested in non-core assets. At the end of 2013 it had invested £240m in non-core real estate.
- American Investors
- Capital Raising
- Closed-ended funds
- Essex Property Trust
- Exeter Property Group
- Investment Strategies
- Investment Vehicles
- Joint ventures
- Listed Markets & REITs
- Real Estate
- State of Wisconsin Investment Board
- Tennessee Consolidated Retirement System
- US Investors