The State of Michigan Retirement System (SMRS) has made $405.5m (€359.8m) in new investments in real estate.
The US pension fund, according to a board meeting document, has committed to debt and industrial strategies.
SMRS made a $160m allocation to The Related Group’s Domain GVA-1 US mezzanine loan programme, which focuses on US apartments.
It also made a $100m investment in a separate account with Transwestern Investment Group’s MIP Holdco, investing in industrial properties, including existing and development projects.
Laurie Dotter, president of Transwestern, said: “We are delighted to partner with SMRS and look forward to benefiting from both teams’ deep experience in industrial investments, risk management and portfolio origination.
“With an understanding of what SMRS wanted to accomplish in terms of capital deployment, return objectives and liquidity, we worked with them to create a specific programme designed to meet their goals.”
SMRS has made a $64.5m investment in a separate account managed by Domain Capital Advisors for the development of a mixed-use project in Atlanta.
The pension fund allocated $50m to the True North Real Estate Fund III, which mostly invests in high-yield real estate debt instruments, and $30m to JP Morgan Asset Management’s IPF II closed-end fund, which focuses on middle-market residential properties in India.
SMRS has a real estate/infrastructure portfolio valued at $5.7bn, with a total one-year return on the portfolio of 14.8%.
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