Fairfield’s US Affordable Housing Fund Secures $648 Million in Commitments
Fairfield’s US Affordable Housing Preservation Fund has reached $648 million (€577.9 million) in investor commitments. The fund, which invests in affordable apartment properties across the United States, continues to attract institutional capital.
One of its latest investors is the Alameda County Employees’ Retirement Association (ACERA). The California-based pension fund has approved a $25 million commitment. The investment is subject to legal and investment due diligence, along with the completion of contract negotiations.
ACERA plans to place the allocation in the core-plus segment of its real estate portfolio.
A fund focused on affordable apartments
Fairfield launched the fund in late 2022. It was the company's first affordable housing investment vehicle opened to outside investors.
The strategy centres on acquiring apartment properties in the US. These include housing subject to rent and income restrictions. The fund targets net returns of 9% to 10% and has a maximum leverage cap of 65%.
The fund has also received backing from other institutional investors. The Alaska Permanent Fund Corporation was among its early supporters, making an anchor commitment of $300 million.
The latest $648 million figure reflects the capital raised from investors for the fund. Fairfield is continuing to build its presence in the affordable housing investment segment through this vehicle.
For institutional investors, the fund provides exposure to a specialised part of the US multifamily property market. Its focus remains on apartment assets with affordability requirements rather than the wider unrestricted rental housing market.
