US roundup: Indiana Public Retirement System, Westbrook

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  • US roundup: Indiana Public Retirement System, Westbrook

NORTH America – The Indiana Public Retirement System has approved a $100m (€78.6m) commitment into the Harrison Street Core Property fund.

Indiana considers the open-ended commingled fund a core fund, even though it does not invest in the traditional property types of office, industrial, retail and apartments.

The fund has a niche investment strategy, targeting senior and student housing, storage and medical office buildings.

According to an Indiana spokesman, the investment in the Harrison Street fund is expected to generate returns in excess of the NCREIF ODCE index, net of any investment management fees. 

The ODCE index produced at total return before fees for the second quarter of 2.8%.

Other investors in the fund include Texas Municipal Retirement System and Kentucky Retirement Systems.

Indiana has a real estate portfolio valued at $931m, through the end of September 2012. 

The real estate portfolio makes up 4.5% of total plan assets of $20.7bn. 

The strategic target for real estate is 7.5%.

In other investment news, Westbrook Partners has concluded its capital raise for Westbrook Real Estate Fund IX

The total equity raise was $1.6bn.

It attracted capital from a wide range of investors, including $15m from the University of Michigan Endowment, $150m from the Teacher Retirement System of Texas and $50m each from the New York State Teachers Retirement System and the State of Wisconsin Investment Board.

Fund IX is an opportunity fund, making equity and debt investments in a variety of real estate assets around the globe. 

One of its targeted property types is hotels, focusing on major markets such as New York, Washington, DC, San Francisco, Los Angeles, London, Paris and Tokyo.

Investors in the fund anticipate a gross IRR of 18%.

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