Brett Johnson

The Arizona pension’s private markets head remains keen to recycle capital into new opportunities in an SMA-heavy real estate program.

The real assets director at the $130bn public pension intends to gradually expand its exposure to the asset class.

The California pension giant has shifted more capital to non-core real estate strategies over the past two years.

The $70bn sovereign wealth fund has engaged with manager Fairfield Residential on ways to address the local affordability crisis.

To close the gap between its actual and target allocations, the system intends to deploy $1.55bn in real estate funds over the next decade.

The $683m system hit pause on new investments during the pandemic, but now is considering five fund commitments to boost its allocation.

Real estate assets do not tend to fare well under affordability policies, consultant StepStone told the investor last week.

The California pension with nearly $370bn in assets is building allocations to industrial and multifamily and curtailing office exposure to match policy targets.

Travis King, head of the family office collective, said the investor type still views the world’s largest property market as ‘the safest spot to be.’

Global opportunities in logistics and data centers were highlighted for Southern California LP with $33bn in assets during optimistic review of rebounding RE assets