Public Employees Retirement Association of New Mexico (New Mexico PERA) has committed $100m (€86.6m) to real estate assets, split equally between and Invesco Real Estate and Realty Income Corporation open-ended core-plus funds.
The pension fund disclosed in a board meeting summary document that it has placed $50m into the Invesco US Income Fund and committed the same amount to the Realty Income US Core Plus Fund.
New Mexico PERA said the Invesco fund is currently predominantly invested in residential, industrial and specialty property types, including medical outpatient, self-storage and life science.
The fund maintains smaller allocations to traditional retail and office. According to sources familiar with the fund, the majority of the current portfolio is concentrated in high-growth Sun Belt markets across the Southern and Western US.
The Invesco fund investment represents a new manager relationship for the pension fund’s real estate portfolio.
Invesco declined a request for comment.
The other commitment to the Realty Income fund represents a new mandate for the pension fund. The vehicle targets net-lease real estate.
New Mexico PERA expects the portfolio will be split with roughly 50% for retail and 50% for industrial assets.
New Mexico PERA is also proposing a secondary market sale of its limited partnership position in the EnCap Energy Capital Fund XI. The proceeds from the transaction are projected to be in the range of $50m to $60m.
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