San Francisco Employees invests in Harrison Street opportunity fund

San Francisco Employees’ Retirement System (SFERS) is investing in Harrison Street Real Estate Partners’ latest US opportunity fund.

The pension fund has approved a $50m (€47.1m) commitment to the Harrison Street Real Estate Partners VI fund, which invests in specialist property types, according to a board meeting document.

Harrison Street, which did not comment, is seeking to raise $950m fund, according to sources that track the fundraising.

Last year, the fund picked up a similar commitment from the Illinois State Board of Investment.

SFERS has invested with Harrison Street before, including a $50m commitment made to Partners IV in 2013.

Most of the new fund will be invested in US student accommodation, senior housing, self-storage, medical offices and healthcare properties.

Investments will include existing properties and development projects, and single assets and portfolio deals.

Harrison Street can use up to 70% leverage and is aiming for a net internal rate of return (IRR) of 16% and a gross IRR of 21%. 

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