The South Carolina Retirement System Investment Commission, Columbia, invested up to $200 million in Heitman Core Real Estate Debt Income Trust, an open-end loan fund, confirmed LaJoia Broughton, spokeswoman, in an email.
The RSIC oversees management of the $30 billion South Carolina Retirement System on behalf of the South Carolina Public Employee Benefit Authority, Columbia.
The investment in the Heitman fund raises the debt allocation in the pension fund's real estate portfolio — which totaled $2.2 billion as of June 30 — to 15% from 11%, showed materials from the commission's meeting Tuesday.
The addition of the real estate loan fund to the portfolio results in a 2-percentage-point reduction of the plan's core/core-plus real estate allocation to 36% and decreasing opportunistic/equity and real estate investment trusts by 1 percentage point each to 25% and 16% of the real estate portfolio, respectively, said Geoffrey Berg, chief investment officer, in an email.
Funding for the Heitman investment will likely come from cash flows from the existing portfolio, including other real estate investments, added Mr. Berg.