New Jersey Division of Investment is broadening its real estate investment plan to include data centres and life science assets.

The $75bn pension fund stated in a meeting document that, following an annual real estate portfolio review, it plans to diversify its assets further by focusing on long-term demographic and secular trends.

The pension fund expects to continue investing in industrial, apartments and medical office but will also consider new subsectors like data centres and life science/research properties. 

New Jersey is underweight to retail and overweight to hotels. It said 10 of its 55 real estate investments recorded a fall in value as a result of the COVID-10 pandemic.

The plan will be to pursue separate account deals where possible to enable it to have more favourable economic terms and governance, the pension fund said.

Real estate currently accounts for 6.32% of New Jersey’s portfolio and the pension fund is recommending increasing the asset class’s target allocation from 7.50% to 8%.

The plan will be to pursue separate account deals where possible to enable it to have more favourable economic terms and governance, it said.

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