Massachusetts Pension Reserves Investment Management Board (Mass PRIM) plans to invest up to $1.6bn (€1.4bn) in private real estate this year, partly funded with capital received from selling out of real estate investment trusts (REIT).
In a board meeting document, Mass PRIM said around 40% of the capital it intends to invest in 2020 is outstanding in the 2019 vintage separate accounts managed by Invesco Real Estate, LaSalle Investment Management, AEW, CBRE Global Investors and Stockbridge.
Last year, Mass PRIM took $300m out of REITs to cover its acquisitions, after altering its investment policy to enable it to.
The $77.6bn US public pension fund, which has a $337m internally-managed direct property portfolio, said most of the capital planned for 2020 would be invested through separate accounts.
In 2019, it acquired 11 core assets worth $712.3m through separate accounts. During the period, it also made a $200m commitment to the DivcoWest Fund VI fund and a $100m commitment to AEW for industrial development opportunities.
In the board meeting document, Mass PRIM said it intended to increase its investment pipeline in specialist property types, such as life science-focused office buildings and senior housing.
The pension fund plans to sell eight of its existing assets valued at $590m, which would exceed the six assets it sold in 2019 for $346.9m.