Sacramento County Employees鈥� Retirement System (SCERS) is to invest cold-storage real estate for the first time.
According to a board meeting report, the pension fund will commit $50m to WCP NewCold III, a fund managed by Westport Capital Partners.
Steve Davis, CIO for Sacramento County, said: 鈥淪CERS has been tracking the cold-storage sector for some time and, as secular changes have occurred in food delivery and prepared foods, it has become a greater priority.
鈥淗owever, cold storage is a specialised property type, requiring operational expertise with limited institutional interest. So we have been waiting for the right investment manager to invest with.鈥�
Last month, 麻豆映画 Real Assets reported that the New York State Common Retirement Fund had approved a $400m commitment to WCP NewCold III, which is structured as an operating platform rather than a traditional fund.
Davis said: 鈥淲e will be investing in an operating platform rather than individual assets as is typical of a commingled fund. Cold storage facilities are complex due to the refrigeration systems, life safety equipment and specialised operation and handling needs.
鈥淥wning a seasoned owner, operator and development platform affords to the specialised construction and operational expertise while benefiting from the growth in value of the business.鈥�
The investment will form part of SCERS鈥檚 non-core real estate portfolio and the pension fund is targeting net levered returns of 20%.
