The New York State Teachers Retirement System is set to make new investments in real estate worth $157.5 million, Investments & Pensions Europe reported.
The investment includes a $50 million commitment to Cerberus Institutional Real Estate Partners III, an opportunity fund which is aiming to raise $1 billion in capital to target investments in distressed mortgage-backed securities in both the U.S. and Europe, IPE said. The pension fund has also committed to investing $75 million into preferred REITs via Park Avenue-based Cohen & Steers Capital Management.
As previously reported, Cerberus is one in a number of companies looking at financing opportunities in Europe. Other companies looking to Europe are Starwood Property Trust, the Blackstone Group and Lone Star.
David Gillan, a former manager in the fund’s real estate group, took over as director of its real estate portfolio earlier this month. [IPE] – Katherine Clarke