Public Officials Benefit Association (POBA) has invested around $32 million in apartments in Manhattan, New York, in a partnership with California State Teachers’ Retirement System (CalSTRS), the Financial News reported.
The investment in Renoir House Apartments, located near Upper East Side, was managed through a $400 million joint venture with CalSTRS. The apartment is expected to have stable demand for leases and offers a possible value increase.
Renoir House Apartment has 151 households, and a loan-to-cost ratio of 58%. The maturity is three years (up to four years), with an estimated annual return of 8.2%.
Pacific Coast Capital Partners, a Los Angeles-based management company, will handle the U.S. end of the joint venture, while Koramco Asset Management, which specializes in real estate, will take charge of domestic fund management.
POBA and CalSTRS committed $200 million in April 2018 to the blind fund joint venture, with an expected annual rate of return of 7%, and invested an additional $200 million in May 2019, with the money to be injected into U.S. real estate.
The South Korean association reported 15.6 trillion won of assets under management at the end of 2020. It plans to increase the ratios of domestic and overseas alternative investments to 22.9% and 35.9% respectively.
CalSTRS is the second-largest public pension fund in the U.S. with assets of about $283.4 billion at the end of 2020. (Reported by Hyewon Chang)