Public Employees Retirement Association of New Mexico (New Mexico PERA) plans to fully redeem its investment from the GEM Realty Evergreen Fund, citing underperformance and strategic concerns.
The pension fund disclosed in a board meeting document that it intends to submit its redemption request at least 90 days before the 14 August 2025 expiration of a six-year lock-up period. The exact timing for capital return is currently unknown.
New Mexico PERA initially awarded a $100m (€92.5m) commitment to the fund in March 2017 through a fund of one vehicle to invest alongside the larger fund that was established by the manager in 2015.
As of September last year, the pension fund’s investment in the GEM Realty fund was valued at $116.8m, which included a $16.8m unrealised gain on its fully drawn commitment.
New Mexico PERA disclosed in the meeting document that the decision for the full redemption from the GEM Realty fund was due to underperformance, annual dividends below target, team turnover and ongoing concerns from the pension fund’s investment staff regarding GEM Realty’s execution of the fund’s strategy.
GEM Realty did not respond to an email seeking comment for this story.
New Mexico PERA’s real estate investments represent 7.7% of its total assets of $18bn, exceeding its target allocation of 7%.
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