NORTH AMERICA – The New Mexico Educational Retirement Board has decided to end its investment in two commingled funds with Prologis and will invest capital with another industrial real estate manager.
In a board-meeting document, Mark Canavan, head of real assets at the pension fund, cited Prologis's poor performance.
Investment staff at the scheme believe the "essentials" supporting Prologis have changed substantially, and that the investments in question were likely to underperform relative to available alternatives.
New Mexico will replace Prologis with a $25m (€18.7m) commitment into the Realterm Logistics Fund.
Canavan pointed out in an email that Realterm's targeted segment in industrial real estate held up "extremely well" in the downturn compared with other industrial managers.
The Realterm Fund is sponsored by Realterm Global LLC, managed by Realterm Global AM, and is sub-advised by North American Terminals.
The commingled fund is looking at a total equity raise of $200m.
The strategy is to invest in high flow-through industrial properties in the US.
New Mexico has had a relationship with Prologis since the first quarter of 2008, investing $10.7m into the Prologis Targeted European Logistics Real Estate Fund and $20m into the Prologis Targeted US Logistics Fund.
Prologis declined to comment.