REAL ESTATE- The Washington State Investment Board has placed $850m (€677m) of new investment capital into real estate in two investments.
The fund made an investment of up to $750m into GMS International and a $100m commitment into the Warburg Pincus Real Estate Fund I. The actions occurred at the pension fund’s board meeting on June 15.
GMS International is an entity being formed by GMS Realty of Carlsbad, Calif. Washington State has a history investing with GMS Realty. In 2000, the two companies formed a venture together along with Principal Enterprise Capital. Since this investment, the pension fund has been happy with the returns the venture has achieved.
GMS Realty has been an acquisition, development and management company that focuses on retail properties in the US.
The deals that the company does in this country have been in the western part of the country. This has included markets like Seattle, Portland, San Francisco, Los Angeles, San Diego and Northern California.
GMS Realty has focused on investing in community and neighborhood shopping centers. This has included buying existing assets and the development and redevelopment of new properties.
Washington State figures that the investment in Warburg Pincus fund gives them more of a global focus. The fund will invest in real estate in the United States, Asia and Europe.
Warburg Pincus hopes for a total raise of around $1bn. The property types that it invests in will be both housing and commercial properties. It wants to buy non-controlling interests in assets around the world.