The State of Michigan Retirement System is committing $130m (€114m) to four non-core real estate strategies.
It made commitments of $50m each to Rialto Capital Management’s Real Estate Fund III-Debt and Transwestern Investment Group’s TSP Value and Income Fund, $20M to Avanath II SMRS Co-Investment Fund and $10m to M1Westgate CoInvest.
Rialto’s fund, which invests in high-yield real estate debt, could provide new debt or buy existing debt.
The fund will invest in major property types in various US markets.
Transwestern’s Value and Income Fund looks to invest in a variety of US property types with a value-add component.
MIchigan will co-invest with the Avanath II vehicle in US affordable housing development.
The manager has been active in the greater metro areas of Seattle and Oakland.
The commitment to CIM Investment Advisors, also a co-investment, will include the development of a 147-unit apartment complex in Santa Monica.
Michigan places real estate and infrastructure into a single investment division.
The portfolio is valued at $6.2bn, with a total one-year return of 9.6%.
Over the past two years, the pension fund has sold non-strategic properties in secondary markets at attractive values, returning more than $2bn in gross distributions.
- Avanath Capital Management
- Closed-ended funds
- Debt funds
- Debt Markets
- Investment Strategies
- Investment Vehicles
- North American Investors
- Pension Funds
- Real Estate
- State of Michigan Retirement System
- Transwestern Investment Group
- US Investors