New York State Teachers Retirement System (NYSTRS) has set up a new apartment investment separate account and will also invest an additional $200m (€161m) with Prima Capital Advisors.
The pension fund said the new apartment separate account is managed by Federal Capital Partners. The real estate manager declined to comment.
NYSTRS told IPE real assets that “there is no pre-determined capital commitment for the account” and that investments will be considered on a case-by-case basis.
The pension fund will have full investment discretion and will have to approve each transaction.
The saparate account “may invest in core stabilised properties as well as value-add and opportunistic investments with the strategy to create core, stabilised properties”, NYSTRS said.
It will target a net internal rate of return of at least 8%.
It is the first time that NYSTRS has created a separate account with Federal Capital.
The pension fund recently invested $100m in Federal Capital Partners Fund IV. It previously invested $75m in Fund III and $50m into Fund II.
Prima Capital Advisors declined to comment on NYSTRS’ new $200m allocation to its existing real estate debt separate account.
Prima manages an existing portfolio for NYSTRS valued at $648m.
The discretionary mandate is to invest in a mixture of commercial mortgage-backed securities, investment-grade real estate investment trust bonds, first-mortgage loans, mezzanine and B-notes.
The last commitment made to the account by NYSTRS was $200m in May 2015.