Massachusetts Pension Reserves Investment Management Board (Mass PRIM) invested $1.3bn (€1.2bn) in new real estate in 2023, according to the pension fund’s board meeting document.
The transactions included a $150m partnership with a real estate investment trust (REIT) operator for self-storage, nine private real estate acquisitions valued at $960m, $72.5m allocated to four emerging-diverse managers, and two real estate debt investments totalling $123m.
Funding came partly from selling $275m of a REIT portfolio.
Mass PRIM also acquired 48,000 acres of timber for $120m and sold another 60,613 acres for $158m during the period.
Mass PRIM said it plans to invest in real estate and timberland assets in 2024, without disclosing the specific amount.
Most of the investments will be through separate account managers. Investments could be core, value-add, or potentially include real estate credit opportunities.
Funding is expected to come from selling part of the pension fund’s REIT portfolio, using their internal financing facility, and other available sources.
Mass PRIM is also reviewing its REIT investment strategy, potentially favouring domestic REITs over global ones due to perceived diversification benefits, risk-return profile, and correlation with equity markets.
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