NORTH AMERICA – Los Angeles Fire and Police Pensions has approved two new real estate commitments totalling $90m (€68m) and will be ending its separate account relationship with Urdang Capital Management.
The two new real estate commitments are $60m into the Jamestown Premier Property Fund and $30m into the Starwood Distressed Opportunity Fund IX.
Both were based on the recommendations of the pension fund's real estate consultant, the Townsend Group.
The Premiere Property Fund is an open-ended core fund managed by Jamestown.
This fund is the manager's initial effort in raising capital from institutional investors in the US.
The investment strategy is to acquire and reposition office and retail properties in New York, San Francisco, Washington, DC and Boston.
The Starwood fund is being marketed as an opportunity fund.
Around two-thirds of the deals for the fund will be focused on buying distressed debt on properties in the US and Europe.
Other potential transactions will involve hotels, corporate recapitalisations and residential land.
There is a 10% preferred return for investors in the fund.
Los Angeles also said that Urdang would be let go after its new six-month contract expires, according to a board meeting document.
It said Urdang's performance did not compare as favourably to its other two separate account managers, Heitman Capital Management and Sentinel Real Estate Corporation.
In other news, Teacher Retirement System of Texas has approved a $100m commitment into the AEW Senior Housing II commingled fund.
The pension fund is placing this commitment into the value-add sector of its real estate portfolio.
It had made an initial investment into AEW Senior Housing I in 2009.
Senior Housing II will buy, reposition and develop senior housing assets.
It will be looking for deals in major metropolitan areas in the US and Canada that have strong demographics and high barriers to entry.
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