San Diego City OK Real Estate Co-Investment Strategy

On March 11, the San Diego City Employees Retirement System Board of Directors approved a revised real estate policy and investment plan that includes the addition of a co-investment strategy, commitment $75 million in non-core real estate through fiscal 2022 and a total of $225 million to $250. million to base real estate in fiscal year 2023.

The system’s new $10.5 billion real estate investment plan also calls for annual non-core real estate commitments of $125 million for fiscal years 2022 through 2027. The plan was recommended by staff and its consultant in real estate investment. Meketa Investment Group.

The board has also delegated authority to staff to make co-investments up to a maximum of 2% of the property portfolio if they are with existing SDCERS property managers, do not include grassroots development and can obtain a opinion of his real estate advisor that the investment is reasonable.

SDCERS has a target real estate allocation of 11% and had 9.4% invested in real estate as of December 31.

Separately, the system’s CEO, Gregg Rademacher, told the board that before the start of the conflict in Ukraine on February 24, the pension scheme had $42 million in Russian investments, which were reduced. to $18 million once Russia invaded Ukraine. Currently, SDCERS holds $2 million in Ukrainian securities and $3 million in Russian investments, Rademacher said.

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