The San Diego City Employees’ Retirement System (SDCERS) is planning to commit $65m (€58.8m) to the CBRE US Core Partners (USCP) open-ended fund, according to a board meeting report.
SDCERS will fund its commitment with capital from the planned sale of assets from a separate account managed by DWS.
According to The Townsend Group, the pension fund’s commitment to the fund complements its existing portfolio.
SDCERS has little exposure to self-storage and Townsend also supports reducing the pension fund’s office exposure due to the late-stage of the economic cycle.
The real estate consultant said the USCP fund has a 4.23% exposure to self-storage and some additional exposure to cold storage industrial assets.
The USCP fund had a 23.8% office exposure as at the first quarter of the year, compared with 33.9% for the ODCE Index.
As at the first half of the year, the fund had made 41 investments with a net asset value of $2.6bn.
CBRE Global Investors declined a request for comment.
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