New Jersey Division of Investment (DOI) has issued $525m (€448.4m) worth of new real estate commitments, according to a board meeting document summarising alternative fund activity for the first quarter of 2026.
The pension fund has committed $400m to the Townsend NJ Real Estate separate account, a partnership established alongside The Townsend Group. New Jersey DOI holds a 99% stake in the separate account and Townsend holds a 1%, with the manager contributing $4m.
The pension fund retains full investment discretion through its approval of all prospective acquisitions. Around 40% to 50% of the separate account’s capital will be invested in primary funds with fundraising targets between $500m and $2bn, focusing on new commitments, secondaries and co-investments within non-core private real estate.
The remaining capital will be directed toward investments in property sectors outside the non-core category.
New Jersey DOI has also committed $125m to Hillwood US Industrial Club Fund VII, a fund focused on acquiring existing assets or funding ground-up industrial developments across the US. The fund manager, Hillwood, has established a $1.5bn hard cap for the fund and is targeting net returns of 14% to 16%.
New Jersey DOI is proposing a reduction in its target real estate allocation from 8% to 7%.
The pension fund has concluded its request for proposal process for a real estate investment consultant, appointing Aksia to the role.
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