CalPERS, the $152bn California Public Employees' Retirement System, has formed a joint venture with Sunrise Assisted Living and AEW Capital Management to buy and operate seven assisted living residences for senior citizens.
Under the terms of the deal, Sunrise, CalPERS and AEW - the pension fund's real estate consultant - will pay $115.5m for the seven properties. CalPERS will invest $29m, US mortgage giant Fannie Mae will loan $81m to the consortium, with the rest of the $115.5m provided by Sunrise and AEW.
CalPERS has an 80% stake in the venture, whilst Sunrise will have the remaining 20% and will run the homes on a day-to-day basis. The homes each have a resident capacity of 648 and are located in six states; two in New Jersey and one each in California, Connecticut, Illinois, New York and Virginia.
The investment by CalPERS, America's largest public pension fund, is part of a previously announced commitment to invest $200m in senior housing and its first investment in assisted living.
By Geoffrey Ho
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers