New Mexico State Investment Council (SIC) is planning to exit underperforming funds and invest in higher-performing funds to help diversify as it rebalances its $2.3bn (€2.2bn) core real estate portfolio.
New Mexico SIC said it has filed to redeem its $57.2m investment in Jamestown Premiere Property Fund, a fund the sovereign wealth fund has since 2012 backed with $104m in capital of commitments.
The Jamestown fund’s total net return on a one-year basis as of the third quarter of 2023 was -51.9% and -22% on a three-year basis, the sovereign wealth fund’s investment consultant Townsend disclosed in a meeting document.
The fund’s heavy exposure to office and retail properties, sectors significantly affected by COVID-19, contributed to its underperformance.
Jamestown did not respond to a request for comment.
New Mexico SIC has also issued a redemption for 50% of its $97m investment in the UBS Trumbull Property Fund. The UBS fund’s one-year total net return for the sovereign wealth fund has been -16.7%. The redemption amount could be increased by the limited partner at a later date.
New Mexico SIC could also consider allocating further capital by increasing its commitments to existing open-ended funds like Carlyle Property Investors, Heitman America Real Estate Trust, Lion Properties Fund, Blackstone Property Partners Life Sciences and PRISA, while also exploring new core investment opportunities.
To read the latest IPE Real Assets magazine click here.
