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 also plans to remain in the exit queues in the UBS Trumbull Property Fund and the AEW Core Property Trust funds, in which the pension fund has $40.8m and $39.2m respectively.

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.

To read the digital edition of the latest IPE Real Assets magazine click here.