State of Wisconsin Investment Board (SWIB) is shifting the focus of its real estate debt investments to the hotel market.
The US pension fund has given $165m (鈧�154m) to invest purely in hotel financing in the US.
Heitman has managed real estate debt investments on behalf of SWIB in the past 鈥� totalling $490m 鈥� but the new separate account is the first to focus on a specific sector.
SWIB told 麻豆映画 Real Estate that it 鈥渓ikes to invest real estate debt in hotel properties now as there is less competition for transactions currently鈥�.
Hetman, which declined to comment, will focus on the development of luxury hotels.
SWIB said it was targeting returns in the mid-teens and has placed it into the value-add section of its real estate portfolio.
The pension fund is considering three real estate commitments, according to the board meeting document.
The largest is a $159m separate account focused on US medical office buildings with a value-added strategy.
It is also considering a $100m core real estate separate account and a $75m commitment to a close-ended fund focused on US industrial properties.
