Boston Retirement to Add Real Estate Strategies

The Boston Retirement System (BRS) has issued a request for proposals (RFP) for $75 million in new real estate commitments.

The $6.8 billion pension system is looking for closed-end private real estate funds that will invest in either value-add or opportunistic strategies. Preferred funds intend to raise more than $200 million and will not close before July 31.

In September, BRS trustees appointed Cohen & Steers and Ares Management to manage $20 million in each of their closed-end funds. Cerberus Capital Management’s Cerberus Institutional Real Estate Partners was also a finalist in the hunt.

The Cohen & Steers Real Estate Opportunities Fund invests in private real estate through direct transactions, co-investments, private fund interests (primary and secondary), and pre-IPOs/special situations.

The fund intends to raise $650 million in institutional capital, according to board meeting minutes. Ares’ AREOF III follows the fund series’ strategy of investing in multifamily, industrial, hospitality, and triple net lease.

The $75 million pacing plan for this year is due to the pension fund’s overall rise in assets last year.