Boston Retirement Earmarks $20M to Real Estate Portfolio
The $7 billion Boston Retirement System has concluded its real estate search, initiated last year for value-add and opportunistic strategies, by selecting two funds after a comprehensive review of multiple firms.
The retirement system allocated $10 million to AEW Partners Real Estate Fund X, managed by AEW Capital Management, which aims to raise $2 billion for investments across office, industrial, retail, multifamily, and senior living sectors. The fund is also part of the Teacher Retirement System of Texas‘ $29.8 billion real estate portfolio, to which it recently allocated nearly $700 million across five funds.
Another $10 million commitment was made to Kayne Anderson Real Estate Partners Fund VII, which is targeting a $3 billion raise with expected returns of 15% to 18%. The fund will focus on acquiring and developing specialized properties, primarily in healthcare-related real estate (medical offices and senior housing) and student housing. In June, the Arkansas Teacher Retirement System committed $50 million to the fund.
In a previous meeting, Mesirow and TerraCap were selected for the value-add real estate portion of the mandate, each receiving a $25 million commitment, as noted in the minutes.
