MHFA issues $30m RFP for real estate

The Boston pension is looking to invest $30 million into an open-end core real estate vehicle.

  • Name: Massachusetts Housing Finance Agency Retirement System
  • HQ: Boston, US
  • AUM: $214 million
  • Allocations to alternatives: 39%

The Massachusetts Housing Finance Agency Retirement System is seeking proposals from managers of open-end core real estate funds with the intention to invest approximately $30 million, according to documents published by Meketa Investment Group.

As outlined in Meketa’s documents, the proposed vehicle must meet the following specified criteria:
(1) have a minimum net asset value of $1 billion.
(2) be well diversified both geographically and by property type with greater than 30 properties.
(3) be a constituent of the NCREIF ODCE Index.

New and existing managers will be considered for the proposed investment, with the caveat that investments in real estate secondaries or funds of funds will not be applicable.

MHFA has previously backed two open-end core/core-plus real estate vehicles, the US Real Estate Investment Fund managed by Intercontinental Real Estate Corporation, and AEW’s Core Property Trust.

Meketa currently acts as an investment consultant for the pension across private equity, real estate and infrastructure. They advise on $1.8 trillion in client assets with more than $150 billion in assets committed to alternative investment.

MHFA currently allocates 13 percent of its total investment portfolio to real estate, comprising around $27.8 million in capital. The $214 million public pension has a target allocation of 8 percent to the asset class.

As illustrated below, its previous private real estate commitments have focused on North American vehicles that invest across the real estate market.

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