CapMan Real Estate’s third Nordic value-add fund nears close | News

CapMan Real Estate expects its third Nordic value creation fund to close in the current quarter. This emerges from a document from the investors’ meeting.

The Los Angeles County Employees Retirement Association (LACERA) has approved a commitment of EUR 75 million for the CapMan Nordic Real Estate Fund III fund. An investment that the pension fund expects will enable it to further expand its international real estate portfolio.

In the long term, LACERA would like its international real estate portfolio to account for 15% of its total real estate portfolio. The latest commitment to CapMan increases LACERA’s real estate portfolio by 9.4% to 11.1%.

Amit Aggarwal, Investment Officer at LACERA, said in a meeting document that the hard cap target of the CapMan Nordic Real Estate Fund III fund was raised from EUR 425 million to EUR 550 million last year.

LACERA also announced that the sale of the Instrada Nomad complex of 392 units in New York City to Global Holdings Management for US $ 381 million (EUR 314 million) has been completed.

John McClelland, LACERA’s Principal Real Estate Investment Officer, told IPE Real Assets: “This sale is part of the strategic decision to segregate the real estate portfolio of most of the individual assets in separate accounts valued at over USD 100 million Net equity value.

“The rationale for making this decision was to reduce risk by reducing exposure to individual assets, and to favor diversification instead.”

The pension fund acquired the apartment complex in December 2012 for USD 301 million.

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