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.

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