Los Angeles City Employees’ Retirement System (LACERS) is among investors in Standard Life Investments’ second European real estate club fund.
The pension fund is planning to commit €26.8m to the European Real Estate Club II, according to board meeting documents.
Standard Life Investments launched its first European Real Estate Club, or ‘Euro Club’, last year, raising more than €300m from global investors.
According to LACERS, the fund manager is targeting another €300m for the follow-on fund, with an upper limit of €400m.
Standard Life Investments declined to comment.
Euro Club II is pursuing a value-add strategy, targeting a net return of 12.5%, LACERS said. Standard Life is making a 5% co-investment and a final closing is planned for the end of November.
The fund will invest in the major cities of France, Germany, Belgium, Netherlands, Luxembourg and the Nordics, according to LACERS.
Euro Club II has been seeded with five properties worth €272m and acquired with €142m of equity, it said.
The Townsend Group, which advises LACERS and some of the investors in the first Euro Club fund, said the assets were good quality and were expected to be attractive to a broad range of core investors on exit, including core open-ended funds.
Standard Life Investments last week revealed it had bought two German office buildings for Euro Club II: Von-der-Tann in Nuremburg, and Hanse Forum in Hamburg.
The buildings were part of the ‘Lilli portfolio’, which Standard Life Investments acquired from two funds managed by Conren Land and N+1 REIM.
The five other office assets in the portfolio went to different funds managed by Standard Life Investments. Coreal Tower in Frankfurt and Deichtor in Hamburg were bought for its first Euro Club fund.
According to LACERS, the 39,000sqm Von-der-Tann, let to Siemens and Fujitsu, was bought for €47m, while the 15,000sqm Hanse Forum was bought for €76.4m.
The pension fund said other seed assets in Euro Club II include Nanterre, an 11,200sqm office building in Paris, bought for €49m, and a 12,186sqm retail and office property in Aarhus, Denmark, bought for €55m.
The fifth asset is a 120,000sqm logistics property in Düsseldorf, Germany, bought for €46.6m.
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