CalSTRS, POBA to form $312.5 mn JV for US multifamily investment: report

California State Teachers’ Retirement System (CalSTRS) and Public Officials Benefit Association (POBA) will set up a $312.5 million joint venture to expand co-investment into equities in US multifamily properties, according to a Korean media report.

The venture will become their third 50:50 JV following two $400 million ventures they launched in 2018 and 2019 respectively to invest in US real estate debts.

CalSTRS and POBA will contribute $150 million each to the new JV which will invest in equities in core-plus multifamily real estates located in 29 cities across the US, the Financial News reported earlier this week.

Apartment manager Fairfield Residential Co., a majority owned by CalSTRS, will commit $12.5 million as a general partner to the venture.

They target a net IRR of about 7% from the new co-investment which will bring their co-investment to $1.1 billion in total.

In Europe’s real estate market, POBA co-invested 800 billion won in Europe’s logistics portfolio with Danish pension fund PFA and Germany’s Patrizia AG in 2019.