NORTH AMERICA – Los Angeles Fire and Police Pensions has allocated $120m (€89.5m) into two core, open-ended commingled funds.
The pension fund, on the recommendation of consultant the Townsend Group, made $60m commitments each into the Heitman America Real Estate Trust and the MetLife Core Property Fund.
Heitman formed the HART fund in early 2007.
There are a total of 130 assets in the fund with a gross value of $3.98bn.
The fund looks to buy a mixture of well-priced core assets diversified by property type and geography in the US.
The leverage component on the portfolio is 30%, and the fund is allowed to consider value-add investments for up to 15% of the portfolio.
The Core Property Fund is the first investment product offered by the third-party management business of MetLife, called MetLife Real Estate Investors, formed at the end of 2012.
The MetLife Fund is being launched with 23 “seed” assets from the parent company’s real estate account.
These represent around $1.4bn of gross asset value.
The leverage component on this portfolio is 3%.
The commingled fund’s strategy is to build a portfolio consisting of at least 90% diversified core properties in the US with 25% leverage.
In other news, the Teacher Retirement System of Texas approved a $219m commitment into the Stonepeak Infrastructure Fund.
The commingled fund will invest in infrastructure assets in North America, focusing on the water and utilities, energy and transportation sectors.
The deal size for the fund will be $50m to $200m, while the targeted return is projected to be in the mid-teens.