UNITED STATES - The Oregon State Treasury has approved two real estate investments for two different institutional investors totaling $129m ($95.6m euros), which edges Oregon Public Employees Retirement Fund (PERF) closer to its 8% real estate allocation.
Oregon PERF has now invested 7% of its $62bn of total assets in real estate following a deal committing it to invest $125m in the Fortress Fund V by the Oregon Public Employees Retirement Fund - a commingled fund managed by the Fortress Group which is seeking a total equity raise of around $4bn.
Oregon PERF has been very pleased with the prior performance of Fortress, according to Brad Child, senior real estate investment officer for the pension fund, having invested capital with Fortress on three previous occasions.
"This manager has been one of our best performing real estate managers. We did not even ask them to come to make a presentation for the latest commitment," he said.
Fortress Fund V commingled fund will be making its investments in the United States and Western Europe, including the United Kingdom, Italy and Germany, to buy residential, commercial and senior living properties in public and private real estate companies while remaining transactions will involve the restructuring and recapitalization of distressed businesses.
The final allocation made by Oregon is a a $4m commitment to the HRJ Global Real Estate Fund III commingled fund and made on behalf of the Higher Education Pooled Endowment Fund.