Employees Retirement System (ERS) of Texas has established a pacing plan of up to $500m (€451m) for real estate and infrastructure investments in the fiscal 2025 year starting 1 September.
The $39.4bn pension fund disclosed in a board meeting document that it intends to issue commitments totaling $300m, with a projected range somewhere between $150m to $450m.
ERS of Texas is currently underweight in industrial assets, which accounts for 23% of its real estate portfolio compared to the NFI ODCE Net’s 36%.
Despite previous concerns about an overvalued market, the pension fund’s investment staff are now exploring ways to reduce its underweight position in industrial assets.
ERS of Texas will also consider investing in niche property types such as self-storage, data centres and life science.
For fiscal 2025, the pension fund intends to invest in real estate by making between four to seven commitments to funds and making one or two co-investments.
The pacing plan for infrastructure during the period has been set at $200m, with a projected range of $150m to $250m.
The infrastructure investment plan includes adding to the pension fund’s core portfolio through a combination of fund commitments and co-investments.
To read the latest IPE Real Assets magazine click here.