Sacramento County Employees Retirement System (SCERS) intends to invest up to $320m (€302.8m) in real estate in 2025, the pension fund disclosed in a board meeting document.
The real estate pacing plan for next year represents an increase compared to the amount invested in 2024.
The only finalised commitment under the 2024 pacing plan is a $50m commitment to WCP NewCold Fund III, a Westport Capital Partners-managed fund that will be investing capital in cold storage warehouses.
SCERS expects to close two commitments by year-end comprising a $50m commitment to a non-core opportunistic fund and a $30m commitment to a non-core Japan-focused investment fund.
The pension fund’s real estate portfolio currently accounts for 6.3% of its total portfolio, below the target allocation of 9%.
Over the past 24 months, SCERS showed limited interest in real estate, as its allocation declined due to falling property values driven by rising interest rates and economic uncertainty about a potential hard landing, it said.
The real estate plan for 2025 includes making a core commitment of up to $75m and rebalancing its existing open-ended core portfolio to align strategies and geographical allocations with target ranges.
SCERS also intends invest in up to four non-core funds, focusing on niche property types and geographically targeted value-add strategies.
SCERS also expects to expand its real assets portfolio with $220m worth of commitments in 2025, compared with the $76m committed this year.
The real assets plan for 2025 includes making three commitments in infrastructure and one in an energy-related fund.
To read the latest IPE Real Assets magazine click here.
