The New Mexico State Investment Council (SIC) has committed to Perella Weinberg Partners’ second pan-European real estate fund, marking the $15.9 billion state endowment’s first contribution to a pure Europe-focused real estate vehicle.
A spokesman for the SIC confirmed that, at its May meeting, the board unanimously approved a €50 million commitment to Perella Weinberg Real Estate Fund II, which is targeting European real estate deals for investors seeking opportunistic returns. This commitment is the SIC’s first move into a pure Europe real estate fund, in keeping with the annual plan strategy of looking in Europe for distressed situations.
“We feel that Perella Weinberg is a strong partner to invest with in this space,” said the spokesman. “We’ve made private equity commitments with European distressed exposure over the last six months and several of our debt managers are investing in the space currently, but this is the first in the real estate portfolio.”
Fund II is seeking €1.2 billion in total capital commitments. As previously reported, an initial close for Fund II was held in July 2012, with a final close slated for the first half of 2013. Dutch pension administrator APG Asset Management is among the investors in Fund II.
The New York-based financial services firm decided to target the same amount of capital as its first fund, Perella Weinberg Real Estate Fund, in 2008. Investors in that vehicle included the New York State Teachers’ Retirement System and APG, according to PERE Connect.
In April, it was reported that the SIC committed a total of $175 million to three real estate investment funds. Based on recommendations from its consultant, The Townsend Group, New Mexico approved a $75 million commitment to USAA Eagle Real Estate Fund, an open-ended fund investing in all major property types across the US. The state endowment also approved an investment of $50 million to Harrison Street Real Estate Capital’s Harrison Street Real Estate Partners IV, as well as a contribution of $50 million to Cypress Equities Real Estate Investment Management’s debut retail investment vehicle, Cypress Acquisition Partners Retail Fund.
As of December 31, the estimated value of the endowment’s real estate portfolio was $850.3 million, invested across 21 commingled funds and five joint venture relationships. Its real estate allocation as of January 31 was 8.5 percent of total assets.
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