Nebraska Investment Council is planning to make $247m (€228m) worth of real estate investments in 2024, the investor’s real estate consultant the Townsend Group disclosed in a meeting document.
The pacing plan for the year involves Nebraska Investment shifting its investment strategy by placing up to $186m into core real estate, marking a departure from 2023, when it did not invest any capital core properties.
Due to rising inflation and interest rates, Nebraska Investment steered clear of core real estate investments in 2023. However, Nebraska Investment now expects a potential downturn that could offer opportunities.
As part of the core strategy, Nebraska Investment expects to increase its exposure to both apartments and industrial sectors and to reduce the parts of the portfolio that have been invested in property types impacted by COVID-19 such as retail and office.
It may also consider moving some capital into alternative property types like student/senior housing and self-storage. Nebraska Investment plans to place the remaining $61m of its pacing capital into non-core real estate.
This strategy will prioritises hiring new managers to achieve greater diversification within their portfolio.
Nebraska Investment expects rising interest rates to create buying opportunities in distressed commercial real estate.
Nebraska Investment will be seeking managers with strategies that capitalise on a potential market shift as it expects rising interest rates to create buying opportunities in distressed commercial real estate.
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