GLOBAL - The Oregon Public Employees Retirement Fund (PERF) has approved a $100m (€75.6m) commitment to the Angelo Gordon Pan Asia Real Estate Fund II.
Pension fund officials cited Angelo Gordon's strong local presence in the Asian market and its ability to find and source transactions.
Angelo Gordon is targeting a total equity raise of $550m-600m. The real estate manager will be making a $15m investment into the commingled fund as a co-investment, targeting a 20% internal rate of return.
The Pan Asia Real Estate Fund II will invest in new development, repositioning and real estate securities in mainland China, South Korea and Japan.
The Oregon PERF, which has total plan assets of approximately $60bn, has allocated 11% to real estate.
Its current funded investments in the asset class total $5.4bn, with another $1.8bn in unfunded commitments.
It said a good proportion of the remaining $400m of capital could be invested in public real estate investment trusts (REITs) toward the end of this year, allocating capital to existing REIT managers for either domestic or global strategies.
Pension fund officials said they were also considering lowering the real estate component for value-added from 20% to 15%, with the difference moving into the core sector of the portfolio for global real estate investments.