Chicago Policemen's Annuity & Benefit Fund committed or invested a total of $85 million to four real estate funds as part of boosting the $2.5 billion fund's real estate portfolio to its 7% target from the current 3.2%.
At their Nov. 29 board meeting, trustees approved investment in open-end core-plus real estate strategies with $25 million awarded to Oaktree Real Estate Income Fund, managed by Oaktree Capital Management (OAK), and $15 million with Blackstone Property Partners, managed by Blackstone Group, said Aoifinn Devitt, the fund's chief investment officer, in an email.
Funding for the core-plus real estate commitments will come from the termination of a $19 million investment in UBS Trumbull Property Fund, an open-end core real estate fund managed by UBS Asset Management, and cash.
Ms. Devitt said the investment in the UBS fund will be redeemed because "we find core-plus (real estate strategies) to be more attractive than core today."
A total of $45 million was committed to two value-added real estate funds with $30 million going to TA Realty Associates Fund XII and $15 million to TerraCap Partners IV, managed by TerraCap Management. Funding for the new commitments will come from rebalancing of overweight asset classes across the portfolio, Ms. Devitt said.
Trustees also approved a commitment of $25 million to Global Infrastructure Partners IV. The fund committed $25 million to the previous fund in the firm's series.