State of Wisconsin Investment Board has $325m (€297.3m) of potential real estate commitments in its investment pipeline, the pension fund disclosed in a board meeting document.
SWIB’s real estate staff are reviewing the potential commitments expected to be placed into US real estate investments once approved.
The pension fund intends to place three of the four commitments into industrial real estate. The plan involves making a $100m commitment into a non-core closed-ended fund, placing the same amount into a core co-investment, and investing $25m into a core co-investment.
The remaining $100m is expected to be placed into a non-core diversified real estate joint venture.
SWIB has not issued commitments to real estate in the last six months due to the pension fund’s over-allocation to the asset class.
As of the end of 2022, SWIB’s exposure to real estate amounted to $15.5bn, an amount that accounted for 14.2% of its total plan assets.
The pension fund’s investment policy calls for an 8% real estate allocation target with a policy range of 4% to 12%.
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