Kansas Public Employees Retirement System (PERS) is pausing its core real estate investment mandate for the rest of the year, according to a board meeting document.
The pension fund has invested $130m (€119m) of the $200m allocated for core real estate in 2019, leaving $70m uninvested.
Kansas PERS, which is being advised by The Townsend Group, said core real estate assets were being repriced in the market, especially shopping malls.
The pension fund is also conducting an asset-liability study, which could have implications for its existing asset allocation.
One possible outcome would be an increase in its target real estate allocation from 11% to 13%.
Kansas PERS is not expected to make a final decision following the asset-liability story until January next year.
The pension fund has been putting capital to work in non-core real estate. Most recently it committed $55m to the Exeter Industrial Value Fund V, which is seeking to raise $1.6bn.