COLUMBUS, Ohio - Ohio Public Employees Retirement System, Columbus, will evaluate its real estate investment trust benchmark. Neil Toth, director of investments, said the $55 billion system uses the Standard & Poor's REIT index, but it is seeking a benchmark that "better represents the opportunities in publicly traded real estate."
The system also is reviewing proposals in its search for a manager to handle active domestic large-cap core equity and another to handle active domestic small-cap core equity portfolios, which will be benchmarked to the Russell 1000 and Russell 2000 indexes. The amounts have not been determined, he said. Funding will come from reducing the plan's $23 billion in internally managed domestic equities. The system is not accepting further proposals for these portfolios.
System officials plan to make a decision in the fall. Ennis Knupp is assisting.
CT Mezzanine Partners II closes at $845 million
NEW YORK - Capital Trust's CT Mezzanine Partners II completed its final closing, raising more than $845 million. Investors included the $80 billion New York State Teachers' Retirement System, Albany, and the $43 billion Minnesota State Board of Investment, St. Paul. The fund, which is co-sponsored by Citigroup Investments, expects to originate up to $2.5 billion in loans and investments during the next two years.
Charlesbank closes Realty Fund V
BOSTON - Charlesbank Capital Partners held a final closing on Charlesbank Realty Fund V, raising $494 million in commitments, exceeding its $400 million target. It is the firm's first real estate fund to include investors other than the $19 billion endowment of Harvard University, Boston, which committed $300 million. Other investors include the $256 million University of Oregon Foundation, Eugene; and the $1 billion endowment of Boston University. The fund will invest in equity or equity-linked mezzanine securities, including acquisitions, development and recapitalizations in a range of property types.
World Bank to take look at real estate portfolio
WASHINGTON - World Bank is reviewing the combined real estate portfolio for its $10.7 billion pension fund and its $900 million medical benefits plan, said Sudhir Krishnamurthi, co-chief investment officer.
"We will not be stepping up the allocation to the asset class significantly," he said. The review, expected to be completed by the end of this month, instead will help determine how the bank's real estate portfolio should be divided among REITs, open-end funds and other vehicles. The two funds have about 6% of combined total assets in real estate.
Aslan Realty Partners II passes $200 million in commitments
CHICAGO - Transwestern Investments received more than $200 million in commitments for its Aslan Realty Partners Fund II from pension funds, foundations, other institutional investors and high-net-worth investors, said Douglas Lyons, managing director. The fund will remain open to new partners through year-end, he said. Commitments are expected to total $400 million to $500 million.
The fund will pursue a small-cap real estate strategy with a target IRR of net 18% to 20%.
NEBF, AMLI to develop suburban Chicago complex
WASHINGTON - National Electrical Benefit Fund and AMLI Residential Properties Trust will develop and own AMLI at Seven Bridges, a 520-unit apartment complex in Woodridge, Ill., said Todd Johnson, director of real estate at the $9.6 billion pension fund. This is NEBF's first joint venture with AMLI. The capitalization will exceed $50 million.