T
he Connecticut Retirement Plans and Trust Funds (CRPTF) is poised to make significant real estate commitments, totaling $450m. According to the pension fund's board meeting document, CRPTF is considering two separate investments: a $200m allocation to BIG Real Estate Fund III, managed by Basis Investment Group, and a $250m investment in a bespoke fund-of-one structure with GCM.

    BIG Real Estate Fund III will focus on value-add US real estate credit opportunities, targeting transactions across the capital stack. The fund aims for net internal rates of return (IRR) between 8.5% and 10%, as well as cash-on-cash returns of 8% to 10%. It will provide senior mortgages, floating-rate bridge loans, and mezzanine loans.

    The GCM fund-of-one will target niche and middle-market real estate opportunities through investments in established smaller funds, typically around $600m. The sectors of focus include truck and outdoor storage, construction lending, opportunistic development, build-to-rent, hospitality, and special situations. This bespoke fund aims for net IRRs of 12% to 15%.