REAL ESTATE - The Sacramento County Employees Retirement System is to interview four value-added commingled fund real estate managers for its new manager search.
The four commingled funds are AEW Value Investors II, GEAM Value Add Realty Partners, Hines US Office Value Add Fund II and UBS Allegis Value Trust.
They’ll be brought in on August 17. Fund chief investment officer Jeff States said: “It is our belief that a final decision on the search will be made the day we interview and discuss the four managers with our board.”
Sacramento County has allocated a total of $75m to be invested in the value-added commingled fund search. The pension fund initiated the search as a way for the investor to achieve more diversification within its real estate portfolio.
The AEW, GEAM and UBS commingled funds are all investing in the four main property types of office, industrial, retail and apartments. The Hines fund only invests in office buildings.
The fund hopes to add at least one office building to its separate account portfolio over the summer. There is a 150,800 square feet of office building in downtown Washington that it hopes to close on during the summer.
Sacramento County would buy the property through its separate account manager, BlackRock Realty. The purchase price is $65m. The going in cap rate would be 5.1%.