New York State Teachers Retirement System (NYSTRS) expects a net new investment of $495m to $900m (€508m to €924m) for equity real estate in the current fiscal 2023 year.
The pension fund disclosed in a meeting document that some of the new investment activity planned for the fiscal year which started on 1 July will be offset by reducing parts of the existing portfolio.
Part of the plan involves the sale of part of its $1.1bn real estate portfolio held through open-ended funds. NYSTRS will also consider selling weaker-performing, non-strategic properties and/or private properties.
According to the pension fund, new investments planned during the period include the buildout of its industrial portfolio using a range of investment vehicles and strategies.
The investment plan in fiscal 2023 includes buying separate account assets with mainstream industrial and industrial subsets like data centres, truck storage and cold storage. NYSTRS will also consider buying private or operating/development companies.
The pension fund also expects to maintain its relationships with existing industrial real estate managers through follow-on commitments. NYSTRS plans to invest in the multi-family sector as well.
NYSTRS, which has a $4.9bn global real estate investment trust portfolio, said it expects to continue using public real estate markets as a way to further diversify its portfolio and gain access to the niche property sectors.
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