Montana sells $100m RE fund stake

The $10.3 billion pension said it wanted to reduce its ‘outsized’ interest in JPMorgan Strategic Property Fund.

Montana Board of Investments divested at least two fund stakes in the second half of 2016, including its interest in a JPMorgan Asset Management real estate vehicle, and considered wider asset class sales, PERE sister publication Secondaries Investor reported.

The US pension received $100 million from the stake in JPMorgan Strategic Property Fund, which reduced Montana's core real estate exposure to 26 percent from 33 percent, according to minutes from its 6 October investment committee meeting. The stake was “outsized” compared with other positions and staff wanted to “trim a bit,” Ethan Hurley, director of private investments at Montana, said during the meeting.

Core real estate had been “running up” and it was a “good time to take some profits,” he added.

JPMorgan Strategic Property Fund is a 1998-vintage open-ended vehicle and is the largest pure core fund in the NFI-ODCE index of 36 commingled real estate funds.

Montana was also considering cleaning up its real estate portfolio through strategic sales, Hurley said, adding that the pension did not expect to sell the stakes at a premium to net asset value.

To read more of this story, click here to go to the Secondaries Investor website.