Virginia Retirement System (VRS) will be growing its investments in manufactured housing with a $150m (€129m) commitment to the Silver Creek Cambio Manufactured Housing Fund, according to a board meeting report.
Like many US public pension funds, VRS has minimal exposure to manufactured housing, with the asset class making up less than 1% of its existing real estate portfolio.
Silver Creek Capital Management is the manager of the fund and is targeting a capital raise of $500m by the end of the year. Commitments so far have totalled around $350m.
VRS has categorised the fund as having a value-add strategy, targeting net returns of between 11% and 13%.
Silver Creek is seeking to acquire existing assets for the manufactured housing fund, likely in the Midwest and Southeast regions of the US.
Many of the properties it has acquired have low vacancy rates and the potential of adding more units. The amount of leverage planned for the fund will be at least 60%, according to public documents.
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