UNITED STATES - The New York State Common Retirement Fund has made another $200m (€134m) investment with the Community Preservation Corporation to extend its existing relationship.

The investment strategy calls for the capital to provide permanent financing for newly-constructed affordable housing in the state of New York.

The pension fund believes this relationship has given the end investor solid returns over recent years,  as the interest rate on  loans it provides is typically in the region of 6.75%.

Community Preservation has run into very little financial difficulties even though the financial markets are in disarray. The company has now had losses amounting to less than 0.5% of its portfolio since the company began in 1974.

Most of the investments using the capital from New York Common involve the construction of new apartment complexes with an average property size of 40 units.

Community Preservation has full investment discretion on the capital. However, it can usually take a couple years to invest all of the allocation it receives from New York Common, as it accepts the $200m allocation is placed to them in $50m increments and only returns for more once that is invested.

New York Common and Community Preservation have now maintained this relationship for more than 20 years.
 

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