The Arkansas Teacher Retirement System (ATRS) has committed a total of $70 million to two real estate investment funds. A spokesman for the $11.3 billion pension system confirmed that it contributed $40 million to Westbrook Real Estate Fund IX and $30 million to Almanac Realty Securities VI. The contributions follow ATRS’ $30 million commitment to Rockwood Capital Real Estate Partners Fund IX in the spring.
ATRS’ latest commitments are part of the state pension plan’s regular investment strategy, as it previously committed a total of $180 million to three prior Westbrook funds and $50 million to Almanac’s prior fund. “We have existing relationships with these firms,” the spokesman noted.
Westbrook Fund IX is a value-added commingled vehicle managed by New York-based Westbrook Partners. Through the fund, Westbrook plans to target all property types in major cities such as New York, Washington DC, San Francisco, Los Angeles, London, Paris and Tokyo. The firm, which is targeting a gross IRR of 18 percent for the fund, primarily is looking at existing properties as opposed to development deals.
Prior to the commitment from ATRS, Westbrook received a $50 million contribution last month from the New York State Teachers’ Retirement System and a $150 million commitment from the Teachers Retirement System of Texas in May. Earlier in May, it was revealed that Westbrook had raised some $1.5 billion of its $2 billion target for the fund.
Almanac Realty Securities VI is a value-added fund managed by Almanac Realty Investors. Through the vehicle, the New York-based firm plans to target private and public real estate operating companies in the 50 largest US metropolitan areas. Almanac is targeting $800 million in equity commitments with a hard cap of $1.2 billion, according to various pension documents and documents filed with the US Securities and Exchange Commission.
In March, the San Francisco City and County Employees’ Retirement System approved a $50 million commitment to Almanac VI. In December, the Los Angeles Water and Power Employees' Retirement, Disability and Death Benefit Insurance Plan resolved to commit $20 million.
Arkansas Teachers commits to Westbrook, Almanac
The $11.3 billion pension system has contributed $40 million to Westbrook’s latest fund and $30 million to Almanac’s current offering.