Massachusetts Pension Reserves Investment Management Board (Mass PRIM) intends to invest up to $400m (€367.3m) in its internally-managed direct property strategy this year.

In a meeting document, the US public pension fund said it plans to mainly invest the capital in US ground leases and triple-net properties.

The $77.6bn public pension made its first in-house direct deal in December 2016 and today owns three assets valued at $686.6m. The current portfolio includes two office buildings in Boston and a ground lease in Santa Clara, California.

The investment planned for 2020 could save the pension fund $1.5m per year, it said.

Mass PRIM said it will be seeking returns of 250bps above 10-year Treasuries.

As previously reported, Mass PRIM plans to invest up to $1.6bn in private real estate this year, partly funded with capital received from selling out of real estate investment trusts.

 

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