US roundup: Maine PERS, Oklahoma Teachers
Maine Public Employees Retirement System has approved a $150m (€109m) commitment to Invesco Real Estate, its first to the investment manager.
The pension fund is investing in Invesco’s US Income Fund, which, according to industry sources, is aiming to generate higher returns than traditional core open-ended funds through the acquisition of properties in secondary markets, with 40-50% leverage.
Invesco is looking to build a $1bn portfolio over the next 2-3 years for the fund, investing in office, industrial, retail properties and apartments.
Maine has invested 7.2% of its $12.3bn of total plan assets in real estate, as of March this year, with a 10% targeted allocation.
Oklahoma Teachers Retirement System has hired L&B Realty Advisors as its first non-core separate account manager, with an $50m initial allocation.
Tom Spencer, interim executive director for the pension fund, said: “This is the amount of capital they will start off with. There is a potential that more capital could be invested with them in the future with this strategy.”
L&B will be looking at two US investment strategies for Oklahoma.
The investment manager will look for returns of 16% through a build-to-core development strategy across major property sectors and also focus on memory care properties, from which it is aiming for an 18% return.
Spencer said there were two goals for the non-core strategy: “Investing this capital will give us the opportunity for more diversification and the chance to earn higher returns.”
The pension fund now has three existing core fund managers, L&B, AEW Capital Management and Heitman.
It invests in real estate through consultancy firm Gregory W Group.