State of Wisconsin Investment Board (SWIB) is considering $546m (€499m) of commitments to real estate strategies, according to a board meeting report.
They include a $110m commitment to a closed-ended fund and $100m to a joint venture, both of which target non-core industrial real estate in the US.
The pension fund is under-allocated to the industrial sector with a 26.5% portfolio weighting in 2023, below the 32.4% weighting of the NFI-ODCE index.
SWIB is also considering investing $175m in non-core real estate debt and $100m in a non-core debt fund.
The pension fund has a history of investing in debt, including mortgages, mezzanine loans, preferred equity, CMBS and REIT bonds.
SWIB might also commit $61m to a core apartment fund.
SWIB produced a -3.9% return on its $11.9bn real estate portfolio in the 12 months ending September 2023, according to a board meeting note.
The return significantly outperformed the NFI-ODCE index which had a return of -10.73% for the same time period.
SWIB declined to comment.
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