New York State Teachers Retirement System (NYSTRS) is expanding its $4.6bn (€4bn) real estate investment trust (REIT) portfolio strategy with the hiring of managers Principal Real Estate Investors and Heitman.
The $135bn US state teachers pension fund is investing in domestic REITs by awarding a $500m mandate to Principal Real Estate for the first time for a REIT strategy and a $100m to Heitman, an existing global REIT manager.
The decision to hire the duo follows a request for information earlier this year.
NYSTRS told IPE Real Assets that the new investment will provide the pension fund exposure to niche sectors such as healthcare, self-storage and data centres in addition to the more traditional residential, industrial, retail and office sectors.
“The liquidity offered by public real estate securities is a useful tool in both adjusting overall allocation levels and property type exposures,” NYSTRS added.
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