The Kansas Public Employees Retirement System (KPERS) recently approved a commitment to Harrison Street Real Estate Capital’s latest opportunistic real estate fund. A spokeswoman for the $13 billion state pension system confirmed with PERE that its board of trustees passed a motion this month to contribute $40 million to the firm’s Harrison Street Real Estate Partners IV fund.
As previously reported, Harrison Street is seeking $600 million in equity commitments for Fund IV, with a hard cap of $700 million. Through Fund IV, the Chicago-based real estate investment firm is looking to invest in off-campus student housing, senior housing, medical office buildings and storage properties across the US.
A first close for Fund IV is anticipated during the first quarter of 2013, with a final close expected sometime near year’s end. Representatives from Harrison Street declined to comment.
The commitment to Harrison Street follows KPERS’ commitment of $40 million to Rockwood Capital Real Estate Partners Fund IX in November, which is part of the pension’s 2013 fiscal year. Rockwood’s Fund IX is seeking $750 million to target hotels, offices, residential and retail properties that are underperforming or suitable for redevelopment or expansion throughout the US.
For further analysis of the student housing asset class and investors’ increased appetite for this space, be sure to check out the February edition of PERE magazine.