San Diego City Employees’ Retirement System (SDCERS) has set aside $60m (€50.6m) to invest in real estate in fiscal 2021 to target non-core strategies.
In a meeting document, the pension fund’s real estate consultant Townsend said for the fiscal 2021 year beginning 1 July, the investment focus will be geared towards blind pool opportunistic funds which target distress investments arising from the current economic crisis’ impact on the real estate sector.
As part of the plan, the pension fund has approved a $30m commitment to the Oaktree Real Estate Opportunities Fund VIII, a fund seeking to raise $3.5bn to invest in a mixture of commercial, office and residential assets mainly in the US.
SDCERS is also expected to consider making an additional commitment to an industrial property type specialist due to the property type’s continued positive outlook.
The fund focuses on distressed debt, equity recapitalisations, rescue financings and discounted securities purchases.
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