Contra Costa County Employees Retirement Association (CCCERA) has approved its first targeted allocation for real estate debt as part of a revised portfolio strategy that eliminates real estate investment trust (REIT) allocations and increases non-core property allocations.
The $11.3bn (€10.1bn) pension fund disclosed in a meeting document that it has approved a 3% target allocation for real estate debt and plans to invest through US fund searches to be conducted over the next six to twelve months.
The pension fund’s investment consultant, Verus, will manage the search for new investment managers.
CCCERA plans to eliminate its 1.9% allocation for REITs, resulting in the termination of a $114.6m relationship with Invesco Real Estate and $97.8m with Adelante Capital Management.
The pension fund said it also intends to increase its value-add real estate from 2.2% to 3% and raise opportunistic real estate from 2.7% to 4%.
CCCERA intends to increase its allocation to infrastructure by 1.7% to 3%.
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