Public pensions lose big in Xanadu investments

(AP) - The stalled Xanadu retail andentertainment complex in the Meadowlands has been more than anunfinished eyesore for New Jersey.For public pensions that invested in

WOODLAND PARK - (AP) - The stalled Xanadu retail andentertainment complex in the Meadowlands has been more than anunfinished eyesore for New Jersey.

For public pensions that invested in it, it's been a seriousmoney drain.

Nine public pension systems from Alaska to Texas to New Yorkinvested nearly $1 billion into two private-equity funds thatinclude Xanadu.

A review by The Record newspaper shows that those pensions haveseen their investments shrink to $360 million - a decline of about60 percent.

The funds are run by Xanadu's main developer, Colony Capital, whichceded control to creditors this summer.

New Jersey's pension system was invested with Xanadu's originaldeveloper and lost $4.5 million.

Xanadu, which sits next to the Izod Center in the sports complexjust outside New York City, was originally slated to open in late2007.

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