Indiana Public Retirement System (PRS) has ended $181m (€183.2m) worth of real estate collaborations with Mesa West and BlackRock held within the pension fund’s real assets portfolio.
Indiana PRS told IPE Real Assets that: “The real asset team regularly reviews the real estate portfolio’s overall exposure to property types and geographies. Periodically, the team will identify opportunities to shift exposures by reallocating capital.”
Indiana PRS said it has redeemed its $75m investment from Mesa West Core Lending Fund, an open-ended debt fund the pension fund has been backing since December 2013.
The Mesa West Core Lending Fund originates floating rate and fixed-first mortgage loans on institutional-quality assets in the US.
Indiana PRS has also redeemed the $106m it had invested in real estate investment trusts via BlackRock. The passive-only strategy invested in publicly traded industrial-only real estate securities. The pension fund first invested with the BlackRock strategy in July 2016.
The Indiana PRS real assets portfolio – which comprises real estate and infrastructure – represents $2.8bn of the $37bn pension fund’s total assets. Real estate accounts for 7.2% of the real assets portfolio and infrastructure makes up 0.4% of the portfolio.
Indiana PRS has a 10% allocation target for real assets.
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