Wisconsin Pension Commits $300 Million to Retail, Office Properties

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The State of Wisconsin Investment Board (SWIB), the entity that manages assets for the state’s retirement systems, has made two separate commitments to real estate totaling $300 million.

The Board committed $150 million to one fund that invests in retail, office, and apartment properties. It also made a second commitment of $150 million to another fund that acquires grocery stores.

From IPE Real Estate:

State of Wisconsin Investment Board (SWIB) is increasing its investment in the UBS Trumbull Property Fund and has awarded two separate account mandates.

The $150m commitment is the second made by SWIB to the core open-ended fund in the past three years, having made an initial $125m allocation in 2012. The investment was worth $165m in September.

UBS Trumbull, managed by UBS Realty Investors, invests in US office, industrial, retail and apartment sectors.

SWIB said it invests in core real estate for its stable income return with low leverage. The investor is expecting its commitment to be called by the manager in the next 12 months.

SWIB has also commited $150m to a new separate account managed by AmCap and $158m to a separate account managed by Heitman.

In a new relationship for the pension fund, AmCap’s Wilson AmCap I fund will be looking to acquire core grocery-anchored/necessity-oriented US retail.

Jake Bisenius, chief investment officer for AmCap, said its total assets under management are now over $1bn.

The real estate manager has a large concentration of assets in Colorado, buying off-market in cash.

“Most of our purchases are done with cap rates that come in the high-5% to low-6% range,” Bisenius said.

The SWIB manages over $100 billion in assets for the state’s retirement systems and trust funds.

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