Arizona State Retirement System (ASRS) is preparing a $2.3bn (€2bn) real estate deployment plan over four years.
The $55.6bn pension disclosed in a board meeting document that the projected capital schedule involves investing $150m this year, $625m in 2026, $925m in 2027 and $600m in 2028.
ASRS expects the real deployment plan to help maintain its revised 15% long-term target allocation for real estate while keeping pace with the total pension plan’s projected 5% annual growth.
As of March this year, the pension fund’s real estate portfolio was valued at $10bn, representing 17.7% of its total assets.
In 2026, as part of its plan to lower real estate exposure, ASRS expects to reclassify two real estate debt strategies to the credit portfolio and conduct a yearly hold/sell analysis. The analysis will recommend selling underperforming assets where the capital could be more profitably invested elsewhere.
For 2026, the main investment focus will be multifamily with $175m commitment. Data centres and healthcare will each receive $100m. Other potential investments include senior housing, office and hospitality.
Over the coming years, the pension fund plans to invest primarily through existing partners to preserve vintage year exposure and maintain portfolio allocation, ASRS said in the meeting document, adding that it will also explore new manager relationships to capture unique opportunities.
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