Maine PERS Commits $185 Million to Infrastructure, Real Estate


The Maine Public Employees Retirement System has made $185 million in commitments to several funds that will invest in real estate and infrastructure in Europe and the U.S.

Details from IPE Real Estate:

A $50m commitment was made to Westbrook Partners’ Real Estate Fund X, an opportunistic fund with an anticipated $2.5bn capital raise.

The fund is targeting major markets in Europe and the US, including London, Paris, Munich, Berlin and Frankfurt.

In the US, the fund is targeting New York, Boston, Washington DC, San Francisco and Los Angeles.

Fund X, which is aiming for 15% gross and 12% net IRRs, is using a “conservative” amount of leverage.

Since 2009, Westbrook has an average of 25% loan-to-value on all of its investments.

The fund will invest in the office, retail, industrial and apartment sectors, targeting assets with distressed capital structures and in need of repositioning.

Maine PERS also approved a $75m commitment to the IFM Global Infrastructure Fund.

The fund has an ex-Australian investment mandate to avoid IFM Investors competing on deals it pursues for a fund it runs that only invests in Australian infrastructure.

The fund will invest in the UK and Poland as part of a focus on Europe and the US.

IFM, which will buy assets that produce a 10% net investment return, will be looking at utilities, transportation systems and telecommunication operations.

Main PERS also approved a commitment of $60m to KKR’s Special Situations Fund II.

The fund will invest in a various levels of the capital stack, including distressed debt in the US, Europe and Asia.

Maine PERS manages approximately $12 billion in assets.


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Texas Teachers Commits $865 Million to Real Estate

businessman holding small model house in his hands

The Teacher Retirement System of Texas has committed $865 million to several real estate funds that will invest in Europe, the U.S. and elsewhere around the globe.

Details from IPE Real Estate:

The US pension fund approved a $465m allocation to Westbrook Partners’ UWS Co-Investment 9 venture. The manager, which did not comment, will invest in special situation opportunities on a global basis.

Westbrook is active in the US, as well as London, Paris, Munich and Tokyo.

Texas also made respective $150m and $50m commitments to Square Mile Capital Management’s Credit Partners and Tactical Partners debt funds. Square Mile declined to comment.

Credit Partners, which will raise $750m, includes a $200m co-investment by the manager.

USAA Real Estate Company, which invested in Square Mile in 2012, is understood to be behind the manager’s commitment.

Credit Partners, which is targeting 10% to 12% gross IRRs, will provide new loans, including mezzanine debt on major property asset classes, avoiding land and single-family residential.

Around 85% of capital will be invested in the US, with the remainder in Europe.

Texas Teachers also approved a $200m commitment to Almanac Realty Investors’ Securities VII, investing $100m directly into the fund and $100m into a sidecar for the same fund for co-investments. The fund focuses on US REITs and real estate operating companies.

TRS Texas manages $124 billion in assets.