Alabama Retirement System, Montgomery, raised its real estate allocation to 5% of total assets, from 3%, said David Bronner, CEO. The $26 billion system made the shift because both the equity and bond markets are offering mediocre returns, Mr. Bronner said. Funding will come from cash.
As a result of the shift, the system will finance two construction projects in Alabama plus an expansion of its office property at 55 Water St., New York. A return of 11% net of inflation is projected for the Water Street expansion.
