The San Francisco City and County Employees’ Retirement System has approved $285m (€245.2m) of commitments to four separate funds.
The pension fund allocated $75m to Fortress Investment Group’s Real Estate Opportunities Fund II and the same amount to the fund manager’s Japan Opportunity Fund III.
Allocations of $100m and $35m were made to KSL Capital Partners IV and CIM Group’s Fund VIII, respectively.
The investment with KSL is the pension fund’s first with the manager.
KSL will invest in leisure and travel-related businesses and assets, including US resorts.
The commitment to CIM Fund VIII is San Francisco’s second to the opportunistic fund, following a $65m commitment in 2013.
The CIM Group raised $2.4bn for the fund, around $400m more than its original target.
The real estate manager made a 5% co-investment, with a cap of $20m.
Targeted gross IRR for the US-focused fund is 20%.
CIM Group will invest in San Francisco, Los Angeles and New York City through a range of structure and property types.
A mix of individual properties, mortgage debt and investments in real estate operating companies will be bought for the fund, with a focus on the office, retail, residential, industrial, hotels and mixed-use property sectors.
Leverage will not exceed 75%.
Fortress Fund II, also an opportunity fund, will invest in the US and Europe, buying properties directly, acquiring distressed debt secured by major properties and investing in real estate operating companies.
The Fortress Group will have a similar strategy for Japan Fund III.
No comments yet