The New Mexico Educational Retirement Board will make a $25 million commitment to a vehicle that invests in distressed Western European properties, and will commit an additional $25 million to another fund that invests in healthcare properties in the U.S.
From IPE Real Estate:
The New Mexico Educational Retirement Board is to make an additional $25m (€19.6m) commitment to Kildare European Partners I.
The pension fund also made a $125m investment in April of this year.
Mark Canavan, head of real assets at the pension fund, said New Mexico had concluded the manager of the fund was “best in class”.
European Partners I could have a total equity raise of as much as $2bn for opportunistic real estate, with a 13% potential IRR.
The vehicle will invest in individual and entity-level assets with operating companies in Western Europe.
New Mexico is also making a $25m commitment to Hammes Partners II, having approved an initial $25m commitment late last year.
The fund is investing in a variety of US healthcare-related properties, with a projected $300m total equity raise.
Hammes II is the first fund product offered by Hammes – all previous investments were invested on behalf of high net worth individuals, family office and publicly traded healthcare REITs on a deal-by-deal arrangement.
Capital for the two funds comes from New Mexico’s increased targeted allocation to real estate – up from 5% to 7% earlier this year.
The Retirement Board isn’t the only pension fund putting more money in the Kildare fund. In September, CalSTRS committed $100 million to European Partners I; the fund now has committed a total of $200 million to the vehicle.