Denver Employees Retirement Plan committed $25 million to Contrarian Distressed Real Estate Debt Fund III, managed by Contrarian Capital Management, said Randy Baum, chief investment officer, in an e-mail.
The fund will look to “purchase troubled (real estate) secured loans at a discount, and then work out of positions, sometimes taking title to the property, sometimes not,” Mr. Baum wrote.
The $2.1 billion pension fund previously committed $20 million to predecessor fund Contrarian Distressed Real Estate Debt Fund II in December 2010.
The pension fund has an 8% allocation to real estate.
