Nebraska Investment Council is planning to resume core real estate investment this year with a $100m (€93.5m) allocation, according to the pension fund’s meeting document.

Nebraska Investment, which paused its investments into core real last year because of a rising interest rate environment, now intends to use the unallocated $100m from 2022 in the current year.

The Townsend Group, Nebraska Investment’s real estate consultant, recommends that the capital should be used in 2023 when conditions recover.

For non-core real estate, the consultant recommends a pacing plan of around $50m for this year, an amount that could be exceeded, depending on opportunities.

According to the meeting document, the pension fund has approved a $64m commitment to Oaktree Real Estate Opportunities Fund IX, a non-core fund seeking to raise between $5bn to $6bn to invest mainly in the US.

This commitment to the Oaktree Real Estate fund comprises a $50m contribution from the Nebraska Defined Benefit and Cash Balance Benefit Plans, $10m from the Omaha School Employees’ Retirement System and $2m each from the General Endowments and the Health Care Endowment.

The Oaktree Capital Management fund targets a net internal rate of returns of 15% to 17%.

The fund, which could target some investments Europe and Asia, will look to find assets through distressed debt acquisitions, rescue financings, discounted debt purchases and equity recapitalisations.

To read the latest edition of the latest IPE Real Assets magazine click here.

Topics