State of Wisconsin Investment Board (SWIB) is seeking to lower its real estate allocation target from 8% to 7%.

The recommendation, made by the $144bn (€124bn) pension fund’s investment consultant NEPC during a board meeting, also involves lifting private equity allocation from 11% to 12%.

The pension fund told IPE Real Assets that “the recommendation change is driven by the current market values across asset classes and pacing assumptions for future capital deployment”.

A final decision is expected to be made following a board meeting approval in December.

Essex Properties Trust revealed in its third-quarter earnings report that it has extended its relationship with SWIB via a new 50/50 US apartments investment joint venture known as Wesco VI.

Both parties have contributed $150m each to the venture which is expected to have a $660m investment firepower.

Confirming the new partnership, SWIB told IPE Real Assets that the joint venture is a ”continuation of a long-standing successful relationship”.

Wesco VI has so far acquired the 139 Monterra Apartments in Mill Creek for $55m and the 155-unit Martha Lakes Apartments in Lynwood for $53m.

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