The State of Wisconsin Investment Board has established a new separate account to invest in senior living properties in the US.
According to a board meeting report, the pension fund has allocated $100m (€81.1m) to the Blue Moon Separate Account I, an entity managed by Blue Moon Capital Partners.
It is the first time that Blue Moon has established a direct relationship with SWIB. The real estate manager launched Blue Moon Senior Housing Fund I in 2014, a fund backed with $175m from Scout Fund II, an emerging manager fund of funds managed by Hawkeye Partners.
According to industry sources, it is rare for a US pension fund to invest in senior living assets through a separate account. Most investment takes place via commingled funds.
But SWIB favours separate accounts as way of more closely controlling its exposure. Blue Moon, which will target core and core-plus assets, will need to approve individual investments.
According to the board meeting report, SWIB believes the sector is attractive due to prevailing demographic trends.
The pension fund ended 2017 with a total of $1.4bn of new real estate investments. But the pension fund was a net seller of real estate for the third consecutive year, as it disposed of non-strategic and value-add assets.
According to the board meeting report, industrial assets continue to be one of SWIB’s primary investment targets.