Kansas Public Employees Retirement System (PERS) intends to invest up to $745m (€714.4m) in timberland for its real assets portfolio in 2025, according to the pension fund’s board meeting document.
The potential investment would represent a major expansion of the $28bn pension fund’s timberland holdings, which were valued at $121m as of the end of the first half of 2024.
The Townsend Group, the pension fund’s real estate consultant stated in the board meeting document that timberland return expectations are supported by projected housing demand over the next 10 years.
Kansas PERS is focused on committing capital to open-ended timberland funds, a strategy supported by the growth in such offerings from five to nine funds over the past three years.
The plan includes a $210m investment in a newly formed fund focused on hardwood and value-add strategies across the Northeast, Lake States, West and South regions of the US. The pension fund expects to approve this first commitment at its 28 March board meeting.
Kansas PERS is considering three other timberland investments: a $115m core investment in the Southern US in May, a $210m investment in October into a $1.3bn core/value-add fund focused on the South and Pacific Northwest, and a potential $210m allocation to a new or existing fund in December.
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