Key Takeaways
- • New Mexico PERA has committed $100M (€86.6M) to real estate, split equally between the Invesco Real Estate US Income Fund ($50M placed) and the Realty Income US Core Plus Fund ($50M committed), according to a board meeting summary document.
- • The Invesco commitment marks a new manager relationship for the pension fund's real estate portfolio, while the Realty Income commitment represents a new mandate.
- • The Invesco fund is predominantly invested in residential, industrial and specialty property types, including medical outpatient, self-storage and life science, with smaller allocations to retail and office.
- • The Realty Income vehicle targets net-lease real estate, with New Mexico PERA expecting a portfolio split of roughly 50% retail and 50% industrial assets.
- • New Mexico PERA is also proposing a secondary market sale of its limited partnership position in the EnCap Energy Capital Fund XI, with projected proceeds of $50M to $60M.
Summary
The Public Employees Retirement Association of New Mexico (New Mexico PERA) has committed $100M (€86.6M) to real estate assets, split equally between the Invesco Real Estate and Realty Income Corporation open-ended core-plus funds, according to IPE Real Assets. The pension fund disclosed in a board meeting summary document that it placed $50M into the Invesco US Income Fund and committed the same amount to the Realty Income US Core Plus Fund.
The Invesco investment represents a new manager relationship for the pension fund's real estate portfolio. New Mexico PERA said the fund is currently predominantly invested in residential, industrial and specialty property types, including medical outpatient, self-storage and life science, with smaller allocations to traditional retail and office. According to sources familiar with the fund, the majority of the current portfolio is concentrated in high-growth Sun Belt markets across the Southern and Western US. Invesco declined a request for comment.
The Realty Income commitment is a new mandate for the pension fund. The vehicle targets net-lease real estate, and New Mexico PERA expects the portfolio to be split roughly 50% retail and 50% industrial assets.
Separately, New Mexico PERA is proposing a secondary market sale of its limited partnership position in the EnCap Energy Capital Fund XI. Proceeds from that transaction are projected to be in the range of $50M to $60M.
The Invesco investment represents a new manager relationship for the pension fund's real estate portfolio. New Mexico PERA said the fund is currently predominantly invested in residential, industrial and specialty property types, including medical outpatient, self-storage and life science, with smaller allocations to traditional retail and office. According to sources familiar with the fund, the majority of the current portfolio is concentrated in high-growth Sun Belt markets across the Southern and Western US. Invesco declined a request for comment.
The Realty Income commitment is a new mandate for the pension fund. The vehicle targets net-lease real estate, and New Mexico PERA expects the portfolio to be split roughly 50% retail and 50% industrial assets.
Separately, New Mexico PERA is proposing a secondary market sale of its limited partnership position in the EnCap Energy Capital Fund XI. Proceeds from that transaction are projected to be in the range of $50M to $60M.
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