Sacramento County Employees’ Retirement System (SCERS) expects to invest $120m (€110.6m) in real estate in 2024, marking a return to the asset class after a hiatus in 2023 due to concerns over rising interest rates impacting property valuations and transaction activity.

In a recent meeting document, SCERS revealed that it had not approved any real estate commitments in 2023, even though real estate currently accounts for 8% of its total plan assets, falling short of the target allocation of 9% for this asset class.

In 2024, the pension fund expects to invest around $40m each into three non-core real estate funds focused on themes like specialty/niche property types in Europe and Asia.

For core real estate strategy, SCERS aims to rebalance its open-ended US real estate portfolio to align its strategic and geographical allocations with their respective target ranges.

In 2024, SCERS has set its real assets pacing amount at $180m to target assets like infrastructure and agriculture through fund commitments worth around $45m each.

To read the latest IPE Real Assets magazine click here.