New Mexico State Investment Council (SIC) is planning to invest $300m (鈧�256.3m) in real estate in fiscal 2021, all of which will be allocated to non-core funds.
New Mexico SIC told 麻豆映画 Real Assets that the Sovereign wealth fund already has 鈥渆nough capital in our core sector and we believe more opportunities in the non-core space will be attractive鈥� during the new fiscal year beginning 1 July.
Part of the investment plan involves the continued expansion of its portfolio in Europe where it believes value-add opportunities exist in sectors such as student housing, storage and multi-family, New Mexico SIC said in a meeting document.
Europe accounts for 9% of New Mexico SIC鈥檚 real estate portfolio. The long-term goal is to lift the Europe portfolio to between 10% to 15%.
The sovereign wealth fund said it has also approved a $75m commitment to the Brookfield Infrastructure Fund IV Renewable Power Sidecar, a fund seeking to raise $500m.
According to New Mexico, the fund targets a 10% net internal rate of return and 13% gross return.
鈥淭his fund allows us to invest in a renewable-energy only fund with a very strong manager and increases our diversification in our real return portfolio,鈥� the sovereign wealth fund told 麻豆映画 Real Assets.
The fiscal 2021 pacing plan for real return asset class investment, which will include some infrastructure, has been set at $275m.
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