New York State Common Retirement Fund has expanded its exposure to core real estate by making its first-ever investment in the UBS Trumbull Property Fund.
The pension fund said it had committed $350m (€322m) to the $19.8bn open-ended vehicle.
The revelation comes the same week that Â鶹ӳ» Real Estate reported that the Oregon Public Employees Retirement System had .
Both funds are part of the $174bn NCREIF Open End Diversified Core Equity (ODCE) index. Funds in the index had began to experience .
New York Common told Â鶹ӳ» Real Estate it expected its capital commitment to the UBS fund to be called in the next 12 months due to an entry queue worth $415m.
The pension fund is projecting returns of 6-8% from the fund, which invests in core office, industrial, retail and apartment assets.
UBS Asset Management was not available for comment.
New York Common has also set up a vehicle with GreenOak Real Estate so it can co-invest $200m alongside the GreenOak US III real estate fund.
The pension fund said this would give it access to opportunistic returns with a value-add risk profile, at fees it believed were below market rate.
It said each of GreenOak’s previous US funds generated top-quartile returns and it was targeting returns of between 15% and 18% from the investment.
GreenOak US III invests in office, multi-family, retail and lodging in Boston, New York City, Washington, DC, Miami, San Francisco and Los Angeles.
GreenOak did not comment.
