New Mexico SIC approves $175m in commitments

The public pension plans to invest $275m in real estate in 2020-21.

Institution: New Mexico State Investment Council
Headquarters: Santa Fe, US
AUM: $26.96 billion
Allocation to alternatives: 22.12%

New Mexico State Investment Council backed two real estate funds from Exeter Property Group and AEW, according to an October 2020 meeting material document.

Highlights from New Mexico SIC’s investment meeting:

  • The pension committed $100 million to Exeter Europe Logistics Value Fund IV. The vehicle invests in the industrial sector in Europe, particularly at undermanaged properties at a discounted price. The fund is targeting €1.25 billion. The firm plans to make between 100-120 investments through the fund, with average commitments of €10 million to €15 million, according to the meeting document.
  • New Mexico SIC also invested up to $75 million to AEW Partners Real Estate Fund IX, which invests in the industrial sector in North America, particularly in multiple property types. The fund is targeting $750 million, according to PERE data.
  • Real estate makes up 9.4 percent of the system’s portfolio. The system set a 12 percent target for the asset class and plans to commit more to funds that focus on Europe, according to the FY 2021 Annual Investment Plan.
  • New Mexico SIC’s 2020-21 real estate investment plan calls for $275 million in real estate commitments. There is a possibility of an over commitment to the asset class for next year, the meeting document shows. The system is predicting the real estate allocation will reach 12.3 percent by the end of 2021.
  • The Townsend Group, the system’s real estate advisor, consulted with New Mexico SIC on the deal with Exeter Property Group and AEW.

Robert “Vince” Smith serves as New Mexico SIC’s chief investment officer and deputy state investment officer. Prior to joining the pension in 2010, Smith was CIO of Kansas Public Employees Retirement System. Steve Moise is the system’s state investment officer. He also serves as managing member of Moise Livestock Company, according to LinkedIn.

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