The New York State Common Retirement Fund committed $950 million to real estate funds in August and September, according to the pension plan’s most recent transaction reports.
The country’s third largest pension plan allocated $350 million, with an additional $100 million discretionary commitment, to Ares European Property Enhancement Partners II. Ares is targeting a $600 million raise for the opportunistic fund, with a hard cap of $900 million, according to media reports. The pension plan has invested with the firm previously, committing $150 million to Ares European Real Estate Fund III, a fund from 2008, and another $200 million to Ares European Real Estate Fund IV, a 2013 fund.
In an April investor presentation, Ares said its European value add and opportunistic funds have returned 16 percent. The firm manages about $7.5 billion in US and European equity, according to its third quarter earnings report.
In addition to the Ares commitment, NY Common allocated $500 million to Blackstone Property Partners, an open-end, core-plus, commingled real estate fund managed by The Blackstone Group. The pension plan has a long history with the world’s largest asset manager: It committed $800 million to Blackstone Real Estate Partners VI, a $10.9 billion fund from 2007; $300 million to last year’s Blackstone Real Estate Partners VIII; and $500 million to 2011’s Blackstone-New Jersey Tactical Opportunities Account, along with commitments to about a half dozen other funds over the last 15 years, according to PERE Research & Analytics.
NY Common also made its first commitment to Niam Nordic, the Stockholm-based private equity real estate firm that has become the largest in the Nordic region. In August, the state pension fund allocated €100 million to Niam Nordic VI, which was launched in the first half of 2015, PERE previously reported.
No placement agents worked on any of the funds.