NJDOI approves new allocation range and presents investment plans in private real estate

The State Investment Council has approved an allowable range to the asset class, and specified plans to restructure the portfolio.

Institution: New Jersey Division of Investment
Headquarters: Trenton, United States
Total AUM: $76.01bn
Allocation to Alternatives: 23.56%
Bitesize: $100-200m

New Jersey Division of Investment (NJDOI)  approved a range of 5 to 10 percent for real estate investments at a regular board meeting on Wednesday. The target allocation to the asset class is 7.5 percent, which was boosted up from 7.25 percent in May.

Hamilton Lane, the consultant for the pension’s real estate portfolio, presented on investment themes and strategic plans during the meeting. The pension is working on shifting their real estate allocation “towards assets being driven by a structural demand shift,” as well as targeting core and core-plus exposure to 40 to 50 percent of the real estate portfolio, which currently stands at 20.1 percent.

The $100 million commitment to Exeter Industrial Core Fund III made in March aligns with the pension’s strategic plans to increase both core and industrial exposure.

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