New Mexico State Investment Council (SIC) is considering a plan to liquidate $140m (€114m) of equity and cash holdings and reinvest the capital in real estate and infrastructure.
Vince Smith, deputy state investment officer for New Mexico SIC, told IPE Real Assets: “This is something that we are thinking about doing in the near future. No action has been taken at this point.”
He added: “This idea is being thought about for the most part as it will allow us to get closer to our targeted allocation to real estate and does not have anything to do with the performance of our equity portfolio.
“Currently, we have invested 9% of our total assets in real estate. Our long-term target is 12%. We are hopeful of reaching the target allocation over the next 36 months.”
More than half of the capital ($75m) would be committed to Heitman America Real Estate Trust, a core US property fund.
The remaining $30m and $35m would be invested in the Clarion Lion Industrial Trust and the JP Morgan Infrastructure Investment Fund, respectively.
New Mexico SIC has existing investments in the three funds, including a $106m holding in the Heitman fund and a $130m holding in the Clarion fund. New Mexico SIC also invested $65m in the JP Morgan fund in 2013.