Alameda County Employees’ Retirement Association (ACERA) is planning to issue a $50m (€46.7m) commitment to Heitman’s latest North American value-add fund.

The pension fund disclosed in a meeting agenda that it is considering making the capital commitment to the Heitman Value Partners VI.

As previously reported Heitman is seeking to raise $2bn for the fund. Heitman plans to make a co-investment of up to $35m to the fund, representing 2% of total commitments.

A commitment to the Heitman fund would be the ACERA’s second real estate investment of 2024, following a $50m allocation made in February to the PGIM Real Estate US Debt Fund.

ACERA is also planning a final real estate commitment next month.

The pension fund’s real estate portfolio amounted to $781m at the end of 2023, representing 6.94% of its total assets, compared with a target allocation for real estate of 9%.

ACERA’s allocation is under review, with potential adjustments being considered during the pension fund’s June board meeting.

Current options include a 2-3% decrease in core real estate and a corresponding 1% increase in real estate debt. Additionally, private infrastructure might see a 2% allocation boost.

Final approval and implementation details are expected in the third or fourth quarter of the year.

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