New Fund Creates Union Jobs

May 17, 2001 ( - The Union Labor Life Insurance Company has launched its Real Estate Equity Fund, a portfolio that enables pension funds and jointly managed trust funds to invest in income-producing properties while creating union jobs.

The fund aims to attract $100 million in investment capital this year, which will be used to acquire commercial properties undergoing construction or rehabilitation or to acquire controlling interests in property through joint ownership agreements.

As the owner and developer of the properties, the fund will stipulate that all construction and rehabilitation work on the properties, including tenant improvements and transportation of construction materials, be performed by workers operating under collective bargaining agreements with unions affiliated with the American Federation of Labor-CIO (AFL-CIO).

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In addition, the operation and maintenance of the properties will be performed by contractors and subcontractors affiliated with this organization.

Structured as a segregated asset account, the fund will provide group variable annuity contracts to fund participants and will measure its performance against the National Council of Real Estate Investment Fiduciaries property index.