New York State Teachers Retirement System (NYSTRS) has proposed a $1.2bn (€1.1bn) real estate equity investment plan for 2025, according to the pension fund’s meeting document.
The $137bn pension fund, which typically invests in real estate equity through separate accounts and funds, may increase its exposure to industrial real estate in 2025 as part of the plan.
NYSTRS may also increase its exposure to affordable housing and non-traditional property types like data centres, towers and self-storage. The pension fund will also look to reduce its office exposure as market conditions improve.
In the meeting document, the pension fund’s real estate investment consultant StepStone also recommends a real estate debt pacing level of up to $1.3bn for 2025.
The plan will involve increasing the pension fund’s non-core debt cap to 60% from 50%, reflecting its conservative approach to mezzanine and bridge lending.
NYSTRS invests in debt through separate accounts. The pension fund recently committed $100m to a BlackRock-managed commercial mortgage-backed security account.
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