Boston Retirement Adds Two RE Managers, Debt Fund
Following a search that began in 2022, the Boston Retirement System, which oversees $6.5 billion in assets, hired two opportunistic real estate managers and committed to a real estate debt fund.
The search was meant to include $125 million in allocations for 2022 and 2023, as well as opportunistic, debt, and value-add strategies.
The real estate firms selected in September were Cohen & Steers and Ares Management to manage $20 million each in their respective closed-end funds.
The Cohen & Steers Real Estate Opportunities Fund invests in private real estate through direct investments, co-investments, private fund interests (primary and secondary), and pre-IPO/special situations. The fund seeks to raise $650 million.
Ares’ AREOF III is aiming for a $6 billion closing. The fund will continue to invest in a variety of property types and strategies, such as multifamily, industrial, hospitality, and triple net lease.
In the debt space, BentallGreenOak received a $30 million commitment in August for its U.S. Value-Add Lending fund. According to board meeting minutes, the firm announced its intention to raise $500 million for a strategy that will invest in a diverse portfolio of commercial real estate loans.
Boston Retirement System’s $647 million real estate portfolio for the 12 months through August 2023 returned -2.5%.