NYSTRS reports on Q1 2021 real estate activity

The US public pension backed eight real estate vehicles in the first three months of 2021.

Institution: New York State Teachers’ Retirement System
Headquarters: Albany, US
AUM: $118.76 billion
Allocation to alternatives: 24.6%

New York State Teachers’ Retirement System approved nearly $1.7 billion-worth of real estate commitments in Q1 2021, a contact at the pension informed PERE.

NYSTRS’ commitments comprised $925 million to commingled funds and $770 million to separate accounts.

The fund commitments included $300 million apiece to Artemis Real Estate Partners Debt Fund and Brookfield Real Estate Finance Fund VI; $200 million to Exeter Europe Logistics Value Fund IV; $100 million to Penwood Select Industrial Partners VI; and $25 million to Pennybacker Extended Investment Vehicle.

The capital invested in separate accounts is made up of $300 million to NYSTRS/Brookfield Real Estate Secondaries Account; $250 million to GCM Grosvenor – NYSTRS CRE Opportunity Partners; and $220 million to NYSTRS/FCP Multifamily Preferred Equity and Mezzanine Program.

NYSTRS has an 11 percent target allocation to real estate equity that currently stands at 10 percent. The Albany-based pension also allocates 6 percent of its portfolio to real estate debt investments.

As illustrated below, the $118.76 billion US public pension’s recent real estate commitments have predominantly targeted North American vehicles targeting value-add returns across a variety of investment strategies.

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