Kentucky Retirement Systems is investing $300m (€247m) in core US real estate funds after increasing its target real estate allocation from 5% to 10%.
According to a board meeting document, the pension fund has approved a $200m commitment to the Harrison Street Core Property Fund and $100m commitment to the Prologis Targeted US Logistics Fund.
The investments will go towards boosting Kentucky Retirement Systems’s exposure to real estate, which at the beginning of the year amounted to $589m, or close to 4% of its total assets.
The pension fund doubled its target allocation to 10% this year following an asset-allocation study.
The fund managed by Harrison Street invests in alternative property types. Its portfolio had a net asset value of $7.5bn at the end of 2020 and consists of approximately 70% healthcare, 20% student housing and 10% self-storage.
The Prologis fund invests predominately in stabilised industrial assets and had a net asset value of $13.4bn at the end of last year. It owns 730 properties across 29 markets in the US.
Prologis, which declined a request for comment, owns more than 25% of the fund’s units.