San Diego City Employees' Retirement System committed a combined $80 million to three real estate funds, said Liza Crisafi, chief investment officer of the $7.1 billion pension fund, in an e-mail.
The board at its Nov. 4 meeting committed $40 million to Brookfield Real Estate Finance Fund V, a value-added real estate debt strategy that focuses on originating loans and acquiring or recapitalizing real estate investments primarily in the U.S. A staff memo said Brookfield Asset Management executives believe there is a $1 trillion market opportunity to recapitalize real estate loans set to mature between 2016 and 2019.
SDCERS also committed $20 million each to CBRE Strategic Partners U.S. Value 8, a non-core diversified real estate fund managed by CBRE Global Investors, and Landmark Real Estate Fund VIII, a fund of funds that invests in the real estate secondary market. The fund is managed by Landmark Partners.
The pension fund is an investor in CBRE Strategic Partners U.S. Value 6 and Value 7 funds. It has invested with Brookfield previously but Landmark is a new relationship, Ms. Crisafi wrote.
The pension fund's real estate consultant, Aon Hewitt Investment Consulting, assisted.
The non-core real estate commitments are part of the pension fund's 11% real estate allocation and the real estate debt strategy is part of its 8% opportunity fund allocation.
Separately, the pension fund expects to commit $100 million to private equity this calendar year, down from the planned 2016 commitment pace of $150 million because the plan will reach its 6.5% allocation three years ahead of schedule in 2016, according to SDCERS' private equity and infrastructure investment plan adopted at the same board meeting.
