Arkansas Teacher Retirement supports US real estate fund Long Wharf | News

The Arkansas Teacher Retirement System has committed $50 million (€47.7 million) to Long Wharf Capital’s latest U.S. value-added real estate fund.

According to the pension fund’s board meeting document, the Long Wharf Real Estate Partners VII fund has secured $323 million in commitments, with another $155 million currently undergoing due diligence.

Long Wharf plans to co-invest $5 million in the fund but did not respond to a request for comment.

Partners VII aims to raise $500 million, with a hard cap of $650 million, and is targeting final closing by the end of 2024.

The fund expects to achieve a net internal rate of return of 12 to 15% over its eight-year term with leverage of 65%. The portfolio is expected to consist of 30-40% industrial properties, 20-30% multifamily properties, up to 5% office properties, 10-20% retail properties, 10-15% hotels and 5-10% other property types. with development limited to 25%.

Arkansas Teacher has established a $750 million real asset allocation plan for 2025 that includes allocating $300 million to core real estate, $100 million to value-added/opportunistic real estate and $350 million to infrastructure .

The pension fund had committed $250 million to core real estate investments in 2024, but no commitments were approved for that strategy.

The allocation plan’s infrastructure investments totaled $50 million in 2024, but the pension fund ended up investing $100 million in the sector.

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