NYSTRS | Pension360

New York Teachers Pension Commits $125 Million to Grocery-Focused REIT

The New York State Teachers Retirement System is investing $125 million in a real estate investment trust (REIT) that owns grocery stores and shopping centers across the country.

New York State Teachers Retirement System has invested $125m (€109m) of growth capital directly into Donahue Schriber Retail Group.

The investment, made in-house without the help of external advisers, will be used by the real estate investment trust (REIT) to make additional property investments.

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NYSTRS told IP Real Estate that its assets were located in areas with strong demographics and were less prone to large swings in value compared with other commercial real estate sectors.

In the last two weeks, Donahue Schriber has closed on two new acquisitions in California: the 320,000sqft Village Oaks shopping centre in San Jose, California for $111m from California State Teachers Retirement System and PCCP; the 91,300sqft Gilman Village in Berkeley for $33m.

The NYSTRS managed $108.2 billion in assets as of June 30, 2014.

Photo by Gioia De Antoniia via Flickr CC License

New York Teachers Pension Invests $140 Million in Retail, Office Properties

The New York State Teachers Retirement System (NYSTRS) has committed a total of $140 million to three real estate funds that invest in retail, office and apartment properties.

From IPE Real Estate:

The [New York State Teachers Retirement System] has committed $40m to the Edens Investment Trust alongside $50m allocations to Madison Realty Capital’s Debt Fund III and Rockpoint’s Core Plus Real Estate Fund.

The pension fund said Edens, which invests in retail properties in US Southeast and East Coast regions, is attractive due to its focus on grocery-anchored necessity retail, a sub-sector more economically resistant to market conditions.

“Our decision to provide additional growth capital is a reflection of Edens’ deep, seasoned development/redevelopment team with a proven track record over multiple cycles,” NYSTRS said.

The pension fund has now invested $447m in Edens, in which it holds a 30% stake.

Madison Realty Capital, meanwhile, is targeting a total equity raise of $600m for its Debt Fund III, with a hard cap of $700m.

The real estate manager will co-invest up to $5m in the fund, which has a targeted 16% net IRR.

Debt Fund III will seek to originate and acquire senior-secured loans, mezzanine loans and preferred equity investments collateralised by commercial real estate.

NYSTERS was one of the last investors to go into Rockpoint’s Core Plus Fund, for which $965m was raised.

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NYSTRS said its previous experience with Rockpoint was one of several reasons for going into the fund.

The Core Plus Fund, focused on office and apartment properties in the East and West Coasts of the US, is targeting a 9-10% net IRR, with a significant component from current cash flow.

The NYSTRS has $95 billion in assets.

New York Teachers’ Fund Takes Lead Plaintiff Role In Class Action Suit Against GM

The New York State Teachers’ Retirement System is leading a class action lawsuit against General Motors; the suit claims GM made misleading and false statements about the safety of their vehicles before disclosing many vehicles had faulty ignition switches.

From Pensions & Investments:

New York State Teachers’ Retirement System, Albany, has been approved as lead plaintiff in a class-action lawsuit against General Motors Co., claiming GM committed fraud in its disclosure of faulty ignition switches.

John Cardillo, a spokesman for the $108.2 billion pension fund, said in an e-mail Friday that NYSTRS had been chosen lead plaintiff, but he declined to provide details. “We do not comment on pending litigation,” he wrote.

The pension fund was granted lead plaintiff status Oct. 24 by U.S. District Judge Linda V. Parker of the U.S. District Court in Detroit. In her ruling, Ms. Parker said the pension fund had suffered the greatest losses among four plaintiffs seeking lead-plaintiff status.

According to Ms. Parker’s ruling, the pension fund owns about $98 million in GM shares, and it claimed an estimated loss of $6.23 million between Nov. 17, 2010, and March 10, 2014 — the period cited in the suit against GM.

The complaint against GM alleges the company “touted the safety, quality and reliability of GM vehicles … despite their knowledge that millions of GM vehicles were plagued with faulty ignition switches,” Ms. Parker wrote, citing the complaint. “Throughout the class period, defendants made allegedly false and/or misleading statements, and failed to disclose materially adverse facts related to the quality and safety of GM vehicles and defects in those vehicles.”

The NYSTRS manages $95 billion in assets.