San Diego City Employees Retirement System’s (SDCERS) real estate investment plan for the fiscal 2022 year includes making non-core investments and trimming its portfolio through asset sale and redemptions.
For the new financial year starting on 1 July, SDCERS intends to make $70m (€59.3m) worth of non-core real estate commitments, according to the pension fund’s meeting document.
Part of the $9.7bn pension fund’s investment strategy will be to explore investments into niche sector funds like cold storage, life sciences, data centres, and single-family residential in the US as well as some overseas industrial fund investments. SDCERS also plans to top-up its commitment to “high conviction managers”.
To help trim parts of its real estate portfolio, SDCERS will be selling the last two assets – worth $26m – in a separate account managed by DWS.
SDCERS intends to monitor its investments in core debt funds with the possibility of some redemptions to keep the investor within its 15% policy limit for this sector.
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