SWIB buys 20% stake in self-storage portfolio for $170m

State of Wisconsin Investment Board (SWIB) has bought a 20% stake in a US self-storage portfolio via a Heitman managed co-investment vehicle.

The pension fund said in a board meeting document that it invested $150M as part of a total of $520M in real estate commitments made during the third quarter of the year with Heitman Storage Partners Co-Investment.

SWIB told IPE Real Assets that it decided to invest in self-storage assets due to their strong income returns and low capital expenditures.

The $117B pension fund’s board meeting report also stated that, through a separate account managed by DWS, it invested $170M for a 75% stake in an 825,000 sqft office building at 235 East 42nd Street in New York City.

A $100M commitment was made to the Torchlight Debt Opportunity Fund VI. As reported previously, Torchlight Investors is seeking to raise $1.5BN for the real estate debt fund.

SWIB said it has nine other potential commitments under review totaling just over $1B. The largest is a $300M commitment to an opportunistic US real estate fund.

read more at realassets.ipe.com