Maryland pension doubles RE allocation to 10%

The $37.5bn Maryland State Retirement Agency is doubling its target allocation for real estate indicating an extra $2.2bn could now be available for investment.

Maryland’s State Retirement Agency has doubled its target allocation for real estate to 10 percent from five percent.

Acting chief strategist of the $37.5 billion (€24.3 billion) fund, John Greenberg, told PERE the increase followed a wider asset allocation study conducted on Maryland’s behalf. The amount of new capital available to real estate is likely to be between $1.7 billion and $2.2 billion.

The Maryland pension will also increase its private equity allocation to five percent from two percent, with up to $1.1 billion extra capital available for investments. There is currently no allocation to infrastructure but the fund would continue to “consider the class along with a host of other investments”, Greenberg said.

The strategist said the increases would take place as soon as possible, but stressed investments would be made on a “prudent” basis. He said: “We hope to achieve these increases the sooner the better but they will be done when it’s prudent.

“When we make asset allocations our decisions are based on the long-term outlook,” he added. As at the end of February, Maryland had a total real estate portfolio valued at $1.9 billion.