Connecticut commits to Starwood; eyes 2 other opportunities

Connecticut Retirement Plans & Trust Funds, Hartford, is committing up to $100 million to Starwood Global Opportunity Fund XI, a real estate fund managed by Starwood Capital Group, said Denise Nappier, state treasurer and principal fiduciary for the $30.1 billion pension fund.

At the investment advisory council’s meeting Wednesday, Ms. Nappier said she agreed to the commitment to the fund, which will primarily focus on investing in the U.S. and Europe through the purchase of real estate with strong potential fundamentals at a significant discount.

The pension fund currently has an aggregate of $250 million in exposure to four previous Starwood funds.

Ms. Nappier also said at the meeting she is considering a commitment of up to $150 million to Apollo Investment Fund IX, a buyout fund managed by Apollo Global Management, and commitment of up to $50 million to Blackstone Real Estate Partners Europe V, managed by Blackstone Group.

The Blackstone fund will primarily focus on large, complex property-related transactions in Europe, including transitional city center office assets. The pension fund is invested in Blackstone Real Estate Partners Europe III.

Apollo IX will primarily focus on buyout opportunities in North America and Western Europe. The plan is currently invested in Apollo Investment Fund VIII.

Ms. Nappier will make a final decision on the investment after the investment advisory council provides feedback. There is no time frame for a final decision.