UNITED STATES - New York State Teachers Retirement System has bought a further share in a real estate backed by a European pension fund, as well as extending current management contracts.
New York Teachers has acquired up to $25m (€18.7m) of preferred shares issued by the Donahue Schriber Realty Group - a private real estate investment trust primarily holding US grocery store-anchored shopping centres, even though it already had $322m with the trust by the end of 2008.
Pension fund officials are understood to like the real estate venture's high-quality portfolio and are confident that the company will be able to navigate its portfolio through the current market downtown.
Donahue Schriber also has the financial backing the JP Morgan Strategic Property Fund, alongside PMT, the €27.4bn industry-wide Dutch metalworkers pension fund.
The real estate company now owners or operates 93 shopping centres totaling 16 million s.f. (1.48644m2) in California, Arizona, Nevada and Oregon.
At the same time, NYSTRS has extended the management contracts for one more year with Adelante Capital Management, Cohen & Steers Capital Management and RREEF for a domestic REIT and REOCs investment strategy, though managers will not be given fresh capital,
By the end of March 2009, the value of these accounts were $111.16m with Adelante Capital Management, $76.26 million with the Cohen & Steers Income Account, $171.17m with the Cohen & Steers Equity Account and $54.52m with RREEF.