Real Estate News
Florida State Board of Admin earmarks $150m for real estate
16 Oct 2012
NORTH AMERICA - The Florida State Board of Administration has approved new commitments in real estate totalling $150m (€116m).
The larger of the two was a $100m allocation into the Tricon XI commingled fund.
The company last month announced its first close for the fund with total commitments of $125m.
It estimates that investors in Tricon XI will achieve a gross IRR of 18-22%.
The fund will invest in distressed residential real estate in the US, aiming to capitalise on a "once-in-a-generation" opportunities that have arisen out of the financial crisis.
The fund will provide financing to "experienced and reputable" developers for the acquisition, repositioning and potential developed of distressed properties.
Tricon will target core markets in the US, including Northern and Southern California, Dallas, Houston, Phoenix and Southern Florida.
Deals could include substantially discounted land purchases, providing equity capital for for-sale residential developments and buying existing residential projects from banks and other distressed sellers.
Florida SBA has also approved a $50m commitment to the Brookfield Fairfield US Multifamily Value Add fund.
The final capital raise came in at $323m of equity, including a $47.2m commitment from California State Teachers Retirement System and a $50m co-investment from Brookfield.
The investment strategy is to acquire undervalued or underperforming apartment properties in infill or supply-constrained locations suitable for renovation, repositioning and operational turnaround.
The assets are located in Seattle, Denver, Phoenix, Dallas, Atlanta and Florida.
Florida SBA has a real estate portfolio valued at $9.4bn, as of the end of August.
The pension fund has invested 7.5% of its $124.8bn in total plan assets in real estate.
The targeted allocation for the asset class is 7%.
Author: Jon Peterson