New Jersey Division of Investment expects to restart its real estate investment programme in the current fiscal 2023 year following a brief pause in fiscal 2022.
The $96bn pension disclosed in a meeting document that, for the fiscal 2023 year which started 1 July, it expects to new commitments for its private real estate programme.
New Jersey Division ended fiscal 2022 with a $5.6bn (€5.6bn) real estate portfolio, representing 6.48% of the pension fund’s total plan assets compared with an 8% real estate allocation target.
In the current fiscal year, New Jersey Division said it will target real estate assets that are driven by long-term demographic and secular trends and reduce correlation to economic cycles.
The pension fund is expected to target assets like medical offices, industrial/logistics, multifamily, life science/research and data centres.
In fiscal 2022, New Jersey Division’s real estate portfolio recorded an 11.43% return compared with the NCREIF ODCE benchmark’s 27.26% return for the year.
Public real estate investment trust, which accounts for 19% of the pension fund’s total real estate portfolio, recorded a return of -10.98% in fiscal 2022.
New Jersey Division also disclosed in the meeting document that it has approved a $300m commitment each into the Brookfield Global Transition Fund and a co-investment vehicle to invest alongside the Brookfield global energy transition fund.
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