New York State Common Retirement Fund (NYSCRF) has backed Cortland鈥檚 latest value-add US apartment fund with a $300m (鈧�276.4m) commitment.
The $268.3bn pension fund said it has placed the capital into Cortland Enhanced Value Fund VI.
Cortland is seeking to raise $1bn and a hard cap of $1.5bn for the new fund. The manager鈥檚 previous fund in the series, which had a final close in May 2021, raised $650m in total. NYSCRF made a $150m commitment to the Cortland Enhanced Value Fund V in 2020.
NYSCRF said Cortland has 鈥漝emonstrated an end-to-end business model with a highly internalised approach to delivering the best-in-class community and resident experience, strong relationships with both buyers and sellers of apartment properties in the fund鈥檚 target markets and strong historical investment performance鈥�.
Fund VI mainly targets assets located in the Southeast and Southwest regions of the US. The fund expects to generate net internal rate of returns of 12% to 13% and gross returns of 14% to 17%, according to NYSCRF.
The pension fund has also placed a $15m commitment into the NW1 NE IOS fund as part of its emerging manager programme for real estate.
NW1 Partners is seeking to raise $250m for NW1 NE IOS to invest in industrial outdoor storage assets in the Netherlands, Germany and Sweden.
NYSCRF said it also acquired the 240-unit Mountain Park apartment complex in Phoenix, Arizona for $70.6m through its existing separate account with .
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