Pennsylvania schools commits $275m to noncore real estate

The $49.4 billion Pennsylvania Public School Employees Retirement System has committed $275 million to noncore real estate, as confirmed by board documents released this month. The capital will be divided among three separate noncore real estate funds: DRA Growth and Income Fund VII, Blackstone Real Estate Partners Europe IV and Exeter Industrial Value Fund III.

DRA Growth & Income Fund VIII, managed by DRA Advisors, received $100 million from the pension fund. The value-add fund, which launched this past May, had a $446 million first close in October, covering one-third of its $1.35 billion fundraising goal. The fund invests in office, retail, multifamily and industrial properties across the United States, and increases property income through operational improvements. PSERS chose to make a follow-on investment with DRA Advisors because of the fi