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Louisiana Teachers’ outlines real estate pacing plans for H1 2021

The US public pension is aiming to commit up to a further $100m to the asset class by June 2021 to meet its fiscal commitment target pacing.

Institution: Teachers’ Retirement System of Louisiana
Headquarters: Baton Rouge, US
AUM: $22.82bn
Allocation to real estate: 8%

Teachers’ Retirement System of Louisiana has set out its proposed real estate capital commitment pacing plans for the first half of 2021, according to documents provided by the pension to PERE.

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Highlights from TRSL’s January 2021 investment committee documents:

TRSL’s target commitment allocation to real estate for the fiscal year June 2020 to June 2021 is $150-250 million across 4-6 funds.

TRSL committed $100 million to real estate opportunities between June and December 2020. The pension committed $50 million each to Waterton Residential Property Venture XV and IPI Partners II.

The pension committed $50 million to Exeter Europe Logistics Fund IV in January 2021, leaving capacity for a further $100 million in potential real estate commitments between February and June 2021.

The pension’s target allocation to the asset class is 10 percent of its total investment portfolio. The target allocation is split 50-50 between core and non-core real estate – the latter comprising funds pursuing value-add or opportunistic strategies. Allocation as of November 2020 is 8 percent.

According to TRSL’s annual fund performance report, real estate returned 0.95 percent for the year leading up to June 2020. 5-year returns for the asset class stood at 7.23 percent, with 10-year returns at 10.96 percent.

Philip Griffith is the chief investment officer of Teachers’ Retirement System of Louisiana. Griffith has been in the position since April 2007, and previously worked as CIO at Louisiana State University Foundation: the institution’s primary private endowment. TRSL’s investment consultant for private markets is Hamilton Lane, with the firm’s responsibilities spanning private equity, real estate, private debt, infrastructure, commodities and farmland.

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