Washington State Investment Board (WSIB) has approved $200m (€186m) each into a separate account with UBS Farmland Investors and a Homestead Capital farmland fund.
The pension fund said it allocated capital to the Olympic Sun separate account which started in 2013 with a $100m commitment. The separate account portfolio recorded a 6.69% net internal rate of return since inception.
The separate account invests in permanent and vegetable crop farmlands in the US, which are then leased back to the farmers.
WSIB committed the $200m to Homestead Capital USA Farmland Fund IV, a fund seeking to raise $500m to invest in row and permanent cropland in the US.
WSIB said both of the farmland investments issued have been placed into the pension fund’s tangible assets portfolio.
WSIB also said it has approved $500m to the Partners Enterprise Capital Holdings real estate operating companies partnership.
The relationship with Partners Enterprise Capital started in 1999. Since then, the pension fund has issued 10 commitments worth $5.25bn in total to the relationship.
Partners Enterprise Capital Holdings provides growth capital to real estate operating companies.
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