NORTH AMERICA – The New York State Teachers Retirement System (NYSTRS) has approved new investments in real estate totalling $200m (€151m).
The pension fund earmarked $100m for the Cabot Industrial Value Fund IV, an industrial-only vehicle managed by Cabot Properties.
The real estate manager is looking for a total equity raise of $650m.
The vast majority of the capital for Fund IV will be invested in the US, although as much as 20% may be invested outside North America, including major markets in the Netherlands and the UK.
The fund will include the purchase of existing assets and some development and redevelopment projects as well.
Within a few years of investing, funds will distribute approximately 8% annually from income received.
NYSTRS has invested with Cabot twice in the past, making $50m commitments to Cabot Fund II in 2005 and Cabot Fund III in 2008.
As of the end of March, the value of these investments was $37.5m and $44m, respectively.
The pension fund's strategic plan calls for a 15% allocation to industrial and R&D properties. It's current allocation stands at 9.4%.
NYSTRS has also set aside $100m for Prima Capital Advisors.
The pension fund had an existing separate account relationship with the manager to invest in commercial mortgage-backed securities and investment-grade real estate investment trust bonds.
As of the end of March, the value of this portfolio was $263.7m.
In addition to the new allocation, the pension fund approved a partial investment mandate for a separate account, investing as much as 20% of the portfolio in lower-leverage mezzanine loans and/or B-Notes.
