Allocation Strategy

The investment manager for Florida’s public pension plan so far has closed on two property fund commitments totaling $150 million for the new 12-month period.

The “allergy” that Japanese institutional investors have had to real estate investments is slowly dissipating, a senior investment figure at one Japan’s largest institutions said at today’s PERE Japan Forum.

Foreign institutional investors are increasing their investments in Japanese real estate, even if the market remains dominated by domestic investors.

Over the next two years, the $8.2 billion pension system plans to allocate $200 million to core investments and $180 million to non-core investments.

The largest US pension plan expects to make one of its largest-ever annual allocations to real estate during its new fiscal year.

The $9.1 billion Chicago-based pension has issued an RFP for a non-core real estate manager to run up to $60 million.

Of that amount, the $45.3 billion pension plan expects to commit $550 million to commingled funds as part of its new fiscal year 2015 tactical investment plan for the asset class.

The Chicago-based real estate investment manager has been awarded its second billion-dollar property mandate in the past week, this time from the £12.6 billion Greater Manchester Pension Fund.

The San Rafael, California-based pension plan will sell off the properties in its separate account with Woodmont Realty Services and reinvest much of the capital in core funds.

The KRW442 trillion Korean state pension fund has agreed a further mandate of €300 million with the London-based real estate investment manager for a value-add, pan-Europe investment strategy, adding to a series of capital commitments that started seven years ago.