LANSING, Mich. — The Michigan State Employees' Retirement System will sell half of its controlling ownership interest in Simpson Housing LP, a real estate investment firm, to the $31.6 billion Alaska Permanent Fund Corp., Juneau. The $2.1 billion deal is expected to close March 31, said Paul H. Saylor, chairman of CS Capital Management, which advised the Alaska fund. Alaska Permanent bought the stake — the $51 billion Michigan fund owned around 95% of Simpson Housing — to get a large real estate deal flow without having to buy one parcel of real property at a time, Mr. Saylor said.
Michael Burns, executive director of the Alaska Permanent Fund, said he expects the fund's commitment to be $550 million at closing. Funding will come from selling existing equity real estate and REIT holdings.
"We think (the deal) is an efficient way to access the real estate market," Mr. Burns said.