The $4.3 billion Vermont State Employees’ Retirement System (VSERS) has approved a $35 million commitment to Blue Vista Real Estate Partners’ fifth fund, according to recently released board meeting documents.
The closed-end fund is aiming to raise $500 million to invest in value-add assets in the United States. It has raised $372 million to date. Its predecessor fund, Blue Vista Real Estate Partners Fund IV, followed a similar investment strategy and raised $445.1 million against its $500 million target at its final close in 2016.
VSERS’ commitment will be contingent on successful contract negotiations before the fund’s final close, which is scheduled for September.
Created in 1944, the pension fund is the public pension plan provided for the state of Vermont. As of March 25, it had a 3 percent target allocation to noncore real estate.
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