(updated with correction)
New Orleans City Employees' Retirement System committed $9 million each to non-core private real estate funds managed by Intercontinental Real Estate Corp. and Principal Real Estate Investors, wrote Jesse Evans Jr., director of the $370 million pension fund, in an e-mail.
The funds are the Intercontinental U.S. Real Estate Investment Fund and Principal Enhanced Property Fund.
The pension fund issued an RFP in December; other finalists were American Realty Advisors and Heitman.
Separately, the pension fund announced Cornerstone Investment Partners, Dana Investment Advisors and Rothschild Asset Management as finalists in its search for an active or enhanced domestic large-cap core equity manager to run $25 million. The pension fund issued an RFP in January, and the finalists will make presentations to the pension fund's board at its June 18 meeting, with a decision expected shortly thereafter.
Mr. Evans wrote that Vanguard Group will also make a presentation at the meeting to potentially manage part of the portfolio passively.
A specific funding source has yet to be determined but will likely be from a combination of reductions and terminations of managers.
Investment consultant The Bogdahn Group assisted with the real estate search and is assisting with the large-cap equity search.
