The Employees Retirement System (ERS) of Texas intends to commit $750m (€642m) to real estate and infrastructure in its 2026 fiscal year.
The pension fund disclosed in a board meeting document that it plans to invest up to $450m in real estate and commit $300m to infrastructure for the period, which begins in September.
The pension fund’s real estate plan includes making 7 to 13 commitments, mainly to funds, and will also review new co-investment opportunities as they become available.
The pension fund’s real estate portfolio is significantly underweight to the industrial sector, with industrial properties accounting for 24% of its real estate holdings. This compares to the 37% weighting of its benchmark, the NFI ODCE Index.
The pension fund’s residential exposure is 34% versus the benchmark’s 28%. The overweight to residential stems from the inclusion of student, senior and manufactured housing, as well as single-family rental assets.
The infrastructure commitments will target transportation and energy sectors, the pension fund said.
The plan is to make between four and nine global infrastructure commitments, with capital also being considered for opportunities in emerging markets.
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