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New Jersey commits $100 million to industrial real estate fund

The New Jersey Division of Investment, which manages investments for the $74.9 billion New Jersey Pension Fund, Trenton, has made a commitment of up to $100 million to Exeter Industrial Core Fund III, managed by Exeter Property Group.

"The industrial real estate market continues to benefit from the expansion of e-commerce, which has supplanted trade as the primary driver of new industrial real estate demand," said a division report describing its interest in the fund.

The division report was presented Wednesday at a meeting of the State Investment Council, which formulates investment policies for the division.

The New Jersey Pension Fund made a commitment to another Exeter fund in 2016.

Also at the state investment council meeting, division officials presented a report showing the pension fund posted an estimated 1.68% return on investment, net of fees, for the eight months ended Feb. 28. This return was below the 2.89% benchmark for the period representing the first eight months of the current fiscal year.

For the 12 months ended Feb. 28, the pension fund had an estimated return, net of fees, of 3.24% vs. a benchmark of 3.68%.

For the three years ended Feb. 28, the annualized 9.98% return fell short of the 10.37% benchmark. For the five years ended Feb. 28, the annualized 6.42% return was just below the 6.52% benchmark.

For the 10 years ended Feb. 28, the annualized return of 10.23% exceeded the benchmark of 10.18%.