UNITED STATES - Pennsylvania State Employees Retirement System has approved a $50m (€37.1m) commitment into the Rockpoint Real Estate Fund III by recycling its capital.
Principal at The Townsend Group, Rob Kochis, has been working with the pension fund to reallocate capital with an existing manager – a strategy Pennsylvania State will adopt for some time because the fund is now over-committed in its real estate allocation
In order to deploy its funds, Pennsylvania will only invest by re-cycling capital with a manager it has done business with before.
The Rockpoint Group has just started the money raising process for Real Estate Fund III opportunity fund but the target equity raising is $2.5bn by the end of September and large state pension funds are expected to be a big source of its investors for the commingled fund.
Investors in Rockpoint’s previous funds have included the likes of California State Teachers Retirement System and Oregon Public Employees Retirement Fund.
This latest offering has a projected gross IRR yields of 20% on an assumed 3-7-year holding period and a global investment strategy.
While some transactions will be completed in the United States, the fund’s remit extends to Europe and Japan to invest in a variety of individual property types and portfolios, including office buildings, hotels and residential land development, as well as transactions with complex solutions as part of the focused strategy.
