Pennsylvania State Employees’ Retirement System (SERS) has taken $175m (€166.7m) out of its real estate investment trust (REIT) relationship with CenterSquare Investment Management.
CenterSquare declined a request for comment.
Pennsylvania SERS said it has taken almost half of the capital it has invested with CenterSquare as part of a new plan to increase the projected return profile of its real estate portfolio.
Under the new strategy, the pension fund will reduce its target allocation to core/core-plus and REITs from 45% to 30% of its total real estate portfolio. At the same time, it will increase its target allocation to value-add/opportunistic from 55% to 70%.
Pennsylvania SERS declined to disclose any other redemptions it has filed within its core and core-plus real estate portfolio.
As of the end of 2022, Pennsylvania SERS a core portfolio valued at $1.3bn.
The open-ended funds that make up the core portfolio are UBS Trumbull Property Fund, Heitman America Real Estate Trust, Blackstone Property Partners, Henderson Park Enhanced Income Fund and Oak Street Real Estate Capital Net Lease Property Fund.
An earlier version of this story incorrectly stated that the relationship with CenterSquare had been terminated.
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