San Francisco Employees’ Retirement System (SFERS) has revealed it is among investors backing TriGate Property Capital’s latest real estate fund.
A board meeting document shows the pension fund has approved a $75m (€69.2m) commitment to TriGate Property Partners III opportunity fund.
TriGate Capital did not comment.
Jay Huish, executive director for the pension fund, stated in the board meeting document that he was unsure how much capital would be accepted by TriGate until the fund reached a final close.
TriGate’s previous fund – whose investment period ends in July of this year – raised $324m by the middle of 2013 and the manager is expected to bring in a similar amount again.
SFERS committed $40m to TriGate Property Partners II, alongisde the California State Teachers’ Retirement System (CalSTRS) and the Teacher Retirement System of Texas.
TriGate Property Partners III is targeting net returns of 15% by investing in non-gateway US markets, where there is less competition.
The fund will make a combination of debt and equity investments in existing office, industrial and retail properties. TriGate plans to convert any acquired debt positions in buildings into equity stakes.
TriGate will also seek to improve properties through recapitalisations or repositioning.
San Francisco considers the new commitment with TriGate Capital to be a follow-on investment. The pension fund made a $40m commitment to Property Partners II in 2012.
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