Contra Costa County Employees’ Retirement Association (CCCERA) is considering a new real estate pacing plan of up to $200m (€170.5m) a year to help achieve its asset allocation target.
According to the $10.2bn pension fund’s meeting document, the new capital investment is needed due to a growth in CCCERA’s equity investments and also to help prop up the real estate portfolio which had received fewer investments as a result of the uncertainties caused by the coronavirus pandemic.
As of the first half of the year, CCCERA had invested 5.6% of its total plan assets in real estate compared with a current policy target of 8% and a long-term policy of 10%.
In the meeting document, consultant Verus recommends placing the new capital into two or three value-add and opportunistic funds.
According to Verus, current market conditions favour light industrial, multi-family housing and non-traditional sectors such as public storage and senior and student housing.
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