SDCERS plans non-core real estate investments in fiscal 2022 | News

The San Diego City Employees Retirement Systems (SDCERS) real estate investment plan for fiscal 2022 is to make non-core investments and trim the portfolio through sales and redemptions of assets.

For the new fiscal year beginning July 1, SDCERS intends to make non-core real estate commitments worth $ 70 million, according to the pension fund meeting document.

Part of the $ 9.7 billion pension fund investment strategy will be to explore investments in niche sector funds such as cold stores, life sciences, data centers and single-family homes in the US, as well as some overseas industrial fund investments. SDCERS also plans to increase its commitment to “High Conviction Managers”.

To reduce portions of its real estate portfolio, SDCERS will sell the last two assets – valued at $ 26 million – in a separate account managed by DWS.

SDCERS also plans to stay in the exit queues of the UBS Trumbull Property Fund and the AEW Core Property Trust Fund, where the pension fund owns $ 40.8 million and $ 39.2 million, respectively.

SDCERS intends to monitor its investments in core debt funds with the possibility of some redemptions in order to keep the investor within its policy limit of 15% for this sector.

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