Investment in U.S. Properties
Meritz Alternative Investment Management has recently decided to invest US$150 million in the second fund of Fairfield Residential. Ten months ago, Meritz signed an agreement to invest the same amount in the first fund of the California-based real estate property management company.
The second fund is to invest in multifamily properties in major U.S. cities. The target net IRR is 7 percent. The investment of the first fund recently reached a completion rate of over 90 percent despite the ongoing pandemic situation.
Fairfield Residential belongs to the California State Teachers' Retirement System, one of the largest U.S. pension funds. The company specializes in residential property investment and the scale of its investment is approximately 40 trillion won.
In the U.S. multifamily market, the rents continued to rise and the vacancy rate continued to fall in the past decade. In addition, the U.S. government is making loans easier in accordance with its housing assistance policy. Under the circumstances, the risk of U.S. multifamily investment is expected to decrease for a while.