PSERS commits $150m to core industrial fund
The Public School Employees’ Retirement System of Pennsylvania has committed $150 million to the Cabot Industrial Core Fund, managed by Cabot Properties, according to a resolution report on the retirement system’s website.
Cabot Industrial Core Fund focuses on acquiring, operating, leasing and selling stabilized industrial properties across the United States with a strong income component, though up to 10 percent of the fund can be invested in non-industrial assets. The fund is looking to raise $750 million and invest approximately $1.1 billion, assuming 40 percent leverage.
The portfolio is expected to consist of 80 to 120 assets totaling 17 million to 20 million square feet, and will generally pursue transactions smaller than $50 million. Building sizes will typically be 100,000 square feet to 700,000 square feet, and between 30 percent and 50 percent of the portfolio will be single-tenant assets.
The fund is targeting net returns of 8&n