New Mexico State Investment Council (SIC) is redeeming its $120m (€102m) investment in the Jamestown Premier Property Fund, due to the core property fund’s underperformance and to help reduce the sovereign wealth fund’s exposure to retail and office assets. –
The full redemption, which has been approved by New Mexico SIC’s board, could take a few years to be paid due to the Jamestown Fund significant redemption queue.
New Mexico SIC said it has decided to issue the redemption due to the Jamestown fund’s recent performance and strategy outlook, historical underperformance, rating from Townsend and capital flows.
Another reason given for the full redemption is that the fund is mostly invested in retail and office assets and New Mexico SIC plans to be under-allocated to those two property types in the future.
For the fiscal 2022 year which started 1 July, New Mexico SIC has set a real estate pacing plan of $300m to $350m to invest in non-core funds.
New Mexico SIC, which currently has 66% of its real estate portfolio invested in core assets, plans to lower the portfolio to 50%.
The sovereign wealth fund is considering a liquid real estate strategy by adding some real estate investment trust exposure to help achieve its goal of having an even 50:50 core and non-core portfolio.
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