City's $100M investment called a 'bold' statement.

A decision by New York's City Comptroller to invest up to $100M of the NYC Employees Retirement System in real estate shows the city continues to be the "center of the universe," according to investment experts.

"This is a bold statement about the strength of New York," said Marc Sznajderman,

The objective of the fund is to develop, re-develop and acquire premium commercial property through the five boroughs. "Investment in premium office space today will keep businesses in our city for years to come," said Comptroller William Thompson.

"This is a prudent investment for NYCERS participants and one that supports the growth and redevelopment of our city's economy."

Martha Stark, Commissioner of Finance and chair of NYCERS, added, "In vesting pension funds in New York's prime real estate market is sound strategy for the City's employees that will also spur continued growth in the market as the City's economy improves."

NYCERS is taking advantage of Tishman Speyer's experience in value-added acquisitions to generate appropriate risk-adjusted returns and at the same time promote the continued investment of high-quality, first-tier office properties for the city.

"We know that these assets represent the hard work and future well being of hundreds of thousands of our fellow New Yorkers, men and women whose devotion and service to our city we greatly respect and appreciate," said Rob Speyer, senior managing director of Tishman Speyer Properties.

"They deserve our best efforts and we pledge to give them that."

According to Sznajderman, the employees' money is in safe hands with Tishman Speyers, which is also committing $50M to city projects based on NYCERS' $100M commitment.

"Tishman understands New York better than anyone. The fact that they are committing this kind of capital in conjunction with the NYCERS is a statement that New York continues to be the center of the universe," said Sznajderman.

"People have been saying it is a difficult office leasing environment, but there's still a fair amount of space being absorbed.

"This is NYCERS making an investment in their home turf when they don't have to, they can put it elsewhere.

"It shows that people continue to see opportunity here and, since the money is going to be distributed in all five boroughs, it will stimulate opportunity for growth there."

The new Fund will seek out a portfolio of property within New York City.

The goal of each individual investment will be either to reposition the property; redevelop the property into premium space; or to develop new property.