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
The registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
This week's top stories were the DWP giving the green light to CDC and TPR granting extensions for 11 master trust authorisation applications.
Susan Martin says building strong foundations for business are the only way forward as the pensions industry is radically shaken up
The Pensions Regulator (TPR) has granted Now Pensions a six-week extension for its master trust authorisation application after the 31 March deadline, PP can reveal.