Public Pensions Lose Big In Xanadu Investments
WOODLAND PARK, N.J. (AP) -- The stalled Xanadu retail and entertainment complex in the Meadowlands has been more than an unfinished eyesore for New Jersey.
For public pensions that invested in it, it's been a serious money drain.
Nine public pension systems from Alaska to Texas to New York invested nearly $1 billion into two private-equity funds that include Xanadu.
A review by The Record newspaper shows that those pensions have seen their investments shrink to $360 million -- a decline of about 60 percent.
The funds are run by Xanadu's main developer, Colony Capital, which ceded control to creditors this summer.
New Jersey's pension system was invested with Xanadu's original developer and lost $4.5 million.
Xanadu, which sits next to the Izod Center in the sports complex just outside New York City, was originally slated to open in late 2007.
(Copyright 2010 by The Associated Press. All Rights Reserved.)
