North Carolina Retirement Methods is investing $300m (€289.9m) in US self-storage properties by way of Prime Group.

The pension fund stated the funding is being made by the use of a newly created non-core separate account relationship with Prime Group.

Prime Group is an actual property owner-operator centered on buying and including worth to a big and rising portfolio of self-storage services situated all through North America.

The separate account intends to amass cash-flowing properties which can be situated in high-growth markets the place self-storage penetration per capita is at or beneath common.

Prime Group can have full funding discretion over the investments made for the separate account which targets a internet inner price of return of 12% to 14%, in accordance with the pension fund.

The separate account can have a leverage element of as much as 65%.

North Carolina Retirement instructed IPE Actual Property that self-storage actual property is without doubt one of the most constant performing sectors in actual property.

“It does properly in up markets and has carried out properly in total down markets. That is partly resulting from its simplicity of operations and low capital expenditures to function property,” the pension fund added.

North Carolina Retirement has previously invested in self-storage properties by way of funds. The asset class represents lower than 1% of its total actual property portfolio.

To learn the most recent version of the most recent IPE Actual Property journal click on right here.

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