San Bernardino County Employees Retirement Association (SBCERA) has set its 2025 real estate investment pacing plan at $145m (€140.8m) to help maintain its 5% target allocation and diversify its portfolio.
The $15bn pension fund may invest more or less, as it did in 2024 when it set a $120m pacing but invested $150m via a commitment to the TPG Angelo Gordon Essential Housing Fund III.
SBCERA’s long-term plan is to achieve an evenly balanced real estate portfolio, with 50% allocated to core strategies and 50% to non-core strategies. Currently, the pension fund’s portfolio comprises 52% core and 48% non-core investments.
NEPC, SBCERA’s real estate consultant, will recommend all new fund commitments for the pension fund this year.
The consultant’s presentation in the board meeting document shows strength in the industrial sector; improvement in retail, driven by grocery-anchored and service retail; mixed performance for apartments; and ongoing weakness in the office sector.
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