TRENTON, NJ-The state Division of Investment has withdrawn a commitment to put $75 million in pension funds into Singapore-based Global Logistics Partners' first China-focused real estate fund.
PERE News reported that this is the first real estate commitment withdrawn in at least three years.
The state investment council informed GLP that it could not meet the fund's “compressed” timeline and close on the investment by early November.
“There were significant legal hurdles on both sides that could not be overcome in time to close on the investment,” the council said in a note to GLP. The pension plan managers said that the $75 million would be invested elsewhere.
Two other states also announced they would cancel real estate fund commitments:
- In December, New Mexico's state investment council retracted a $50 million commitment to MetLife Real Estate Investors' MetLife Core Property Fund after contractual terms could not be resolved.
- Last summer, the Texas Municipal Retirement System could not agree on a contract for a $100 million investment with Mesa West Capital's Mesa West Core Lending Fund.
New Jersey's pension plan also lowered its target allocation to real estate from 3.5% to 3.2% in equity-related real estate and from 2% to 1.3% in debt-related real estate. Read more here.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
