Kentucky commits $80m to noncore real estate
The $15.6 billion Kentucky Retirement Systems has committed $80 million to noncore real estate, divided equally between Greenfield Acquisition Partners VII, managed by Greenfield Partners, and Lubert Adler Real Estate Fund VII, managed by Lubert-Adler.
“We’ve had a difficult time getting comfortable with the valuations in core, so we’ve been adding value-add and a lot of real estate–backed debt in our real estate program,” explains David Peden, chief investment officer with KRS.
Greenfield’s GAP VII, a value-added fund that launched in September 2013 with a $750 million fundraising goal, will target industrial, suburban office and student housing properties. The fund will focus on U.S. markets, but it will potentially invest in Europe