State of Wisconsin Investment Board (SWIB) has bolstered its US industrial real estate portfolio with a pair of new commitments to High Street Logistics Properties and Penwood Real Estate Investment Management funds worth $90m (€83.2m) in total.
The pension fund disclosed in a board meeting document that during the second quarter of the year, it placed $55m into the High Street Real Estate Fund VIII fund and invested $35m in a co-investment fund affiliated with the Penwood Select Industrial Partners VII fund.
The fundraising target of the High Street fund, which targets core industrial assets, is currently unknown. High Street Logistics Properties did not respond to a request for comment.
SWIB previously approved a $100m commitment to the non-core Penwood Select Industrial Partners VII fund last year.
The pension fund expects the two commitments to help bring its industrial asset allocation closer to the NFI-ODCE index, its benchmark. As of 31 March 2024, industrial assets accounted for 27.5% of SWIB’s portfolio, compared with the benchmark’s 33.6%.
SWIB disclosed in the meeting document that it is considering two additional core industrial commitments as part of its $300m investment pipeline.
These potential investments involve $50m each in an open-ended and a close-ended fund.
The remaining pipeline includes a $150m allocation to a non-core global closed-end fund and a $50m commitment to a core closed-end US apartments fund.
SWIB declined a request for further comment.
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