CCCERA commits $75m to Invesco’s fifth U.S. value-add fund
The $7.61 billion Contra Costa County (Calif.) Employees’ Retirement Association has made a $75 million commitment to Invesco U.S. Value-Add Real Estate Fund V, according to board meeting documents.
The pension fund said, “Invesco’s value-add team has assembled a pre-specified portfolio, representing close to 40 percent of Fund V’s target size of $1 billion. This pre-specified portfolio allows us to underwrite a large portion of the ultimate portfolio as well as provides the Invesco team additional time to patiently build the remainder of the portfolio.”
CCCERA has committed to every Invesco Value-Add Real Estate Fund in the existing series. Invesco Value-Add Real Estate Fund V began fundraising in 2017, with $410 million raised to date, with a $1 billion target. A large portion of Fund V was already pre-specified, leaving the value-add team $600 million to commit during the next three years of the fund’s investment period. The pre-specified Fund V includes three closed deals totaling $170 million of equity and another $230 million in several deals in late-stage due diligence. According to the pension fund documents, Fund V plans to hold its final close by the end of 2018.
CCCERA remains constructive on the value-add real estate segment with a 5 percent target. CCCERA’s current value-add real estate investments have a market value of approximately $161 million, according to the document. In addition, the total amount currently available for CCCERA to commit to value-add real estate funds is approximately $538 million.
