Employees Retirement System (ERS) of Texas has increased its fiscal 2021 real estate investment target by $200m (€167.6m) to enable it to pursue opportunities, according to the pension fund’s meeting document.
For the fiscal 2021 year which started in September, the pension fund expected to invest up to $600m in real estate but has now raised the amount to $800m as a result of a strong pipeline of future commitments, it said.
So far, ERS of Texas has approved a $75m commitment to the DivcoWest Fund VI fund and $50m each into Marcus Capital Partners Fund III and Principal Digital Real Estate funds.
For fiscal 2021, the pension fund intends to make further core investments via core-plus blind pool funds and co-investment opportunities.
The pension fund’s investment plan for fiscal 2022 is to invest up to $700m in core and non-core real estate.
ERS of Texas said it intends to diversify and increase its international exposure which accounts for 23% of its total real estate portfolio. In the long-term, the international portfolio is expected to reach 30%.
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