New York State Teachers Retirement System (NYSTRS) has reduced its real estate investment trust (REIT) exposure by $300m (€277.5m) to help rebalance its real estate equity portfolio.
The $137bn pension fund’s equity real estate portfolio had grown to 13.3% of total assets, exceeding the target allocation of 11% for real estate.
The pension fund reduced the REIT exposure by taking $125m from Heitman’s global REIT portfolio, $50m from Heitman’s domestic REIT portfolio, $50m from DFA’s global REIT strategy, $50m from Principal Real Estate Investors’ domestic REITs and $25m from Brookfield’s global REIT portfolio.
NYSTRS said it has transferred the $300m from its $3bn REITs portfolio to its cash section. The pension fund is yet to determine how the released capital will be re-invested.
NYSTRS has committed $370m to expand its real estate debt portfolio, according to the pension fund’s board meeting document.
The investments include committing $70m in a new loan for the Amazon Park of Commerce industrial asset in Jupiter, Florida.
NYSTRS also allocated $300m to FCP’s Freddie Mac K Series, which provides fixed or floating rate subordinate loans on residential properties with loan-to-value ratios typically ranging from 60% to 65%.
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