State of Connecticut Trust Funds agreed to sell its entire real estate commingled fund portfolio - valued between $450 million and $520 million - to Landmark Partners, a private investment firm. The deal, which is expected to close in December, would be the first time a large dose of liquidity was provided to the pension fund real estate commingled fund industry.
State Treasurer Christopher Burnham and Landmark Chairman Stanley Alfeld declined to disclose the amount. Estimates of the discount from net asset value at which Landmark will buy Connecticut's interests range from 10% to almost 30%, industry sources said.
Landmark will receive interests in 27 funds run by nine firms, an industry source said. The managers are Heitman Capital Partners, AEW, CIGNA Investment Management, Allegis Realty Investors, Copley Real Estate Advisors, RREEF Funds, Sentinel Real Estate, Westmark Realty Advisors and J.P. Morgan Investment Management.
A final decision on reinvesting the proceeds has not been made, said Mr. Burnham.