Washington State Investment Board (WSIB) has approved a new $500m (€484m) commitment to an existing Asia real estate investment relationship with Crane Capital.
WSIB’s relationship with Crane Capital started in 2019 when the pension fund recommended committing $250m to the manager to invest in developed Asia-Pacific markets through real estate operating companies. A year after, WSIB approved a $750m commitment to Crane Capital.
Commenting on the latest commitment, the pension fund told IPE Real Assets that Crane Capital has built a talented team and continues to build on its strong investment relationships in the Asian region.
“Additional capital from WSIB will allow Crane to pursue currently identified opportunity for further growth of existing portfolio companies plus potential new partnerships.”
The net internal rate of return on the Crane Capital portfolio, after costs and currency adjustments, has been 5% since inception, according to the pension fund.
“This structure provides us with strong governance provisions related to acquisition, disposition and annual planning processes. Diversification is enhanced by our partners investing at different points in the real estate capital structure and at different times in the property life cycle.
”These varying kinds of diversification provide a degree of stability within a cyclical investment class,” the pension fund said.
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