Massachusetts Pension Reserves Investment Management Board (Mass PRIM) plans to add up to $400m (€334.3m) to its internally-managed direct property investment strategy this year.
Mass PRIM currently has a $698.7m direct investment program, representing 4.9% of the pension fund’s total real estate portfolio. The fee savings on the direct investment portfolio is estimated at $1.5m per year.
The long term target is to allocate up to 15% of the total real estate net asset value to the internal investment program.
Mass PRIM said it will also consider making some additional investments through either its separate account managers or some funds on an opportunistic basis.
One of its investment plans for this year would be to continue to use real estate investment trusts as liquidity for its new acquisitions.
In 2020, Mass PRIM completed two core acquisitions for $91m and one non-core investment of $200m, while at the same time selling three core assets for $268m.
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