SWIB invests $275m in real estate debt via Heiman and DWS strategies | News

State of Wisconsin Investment Board (SWIB) has made $275m (€253.4m) worth of investments into real estate debt strategies managed by Heitman and DWS.

SWIB disclosed in a meeting document that it has made a $100m commitment to the Heitman Real Estate Debt Partners III fund and placed $175m into the Wilson DWS Senior Finance separate account relationship as part of $488m worth of commitments made by the pension fund during the final quarter of 2024.

According to SEC filing, Heitman, which seeks to raise $1bn for Partners III, had raised $652m for as of January 2024.

The Heitman fund is expected to use a variety of debt structures to invest the capital including subordinate debt, senior bridge loans and senior construction loans.

Partners III’s investment strategy will target a mix of property types in both the primary and secondary markets across the US, including multifamily housing, single-family rentals, and self-storage facilities. Transactions will be pursued in both the primary and secondary markets.

The Wilson DWS Senior Finance separate relationship will invest in non-core type transactions.

The $156bn pension fund disclosed that the other investments it made during the final quarter of 2023 include a $100m commitment to SRE Wilson Industrial Holdings for a non-core strategy, a $68m investment into Exeter Core Industrial Club Fund II to invest in core and core plus industrial assets, and a $45m investment into the FPA Core Plus Fund III-A to target multifamily real estate opportunities.

To read the latest IPE Real Assets magazine click here.