New York State Common Retirement Fund (NYSCRF) is committing $300m (鈧�253m) to the Prologis Targeted US Logistics Fund.
The $5.5bn, open-ended fund is as a result of a transfer of 拢3.5bn in assets from Prologis鈥� balance sheet, as reported by IPE Real Estate in June.
NYSCRF is currently underweight logistics real estate.
The pension fund said: 鈥淚n addition to meeting a need for increased exposure to the asset class, Prologis offered attractive economics through the acquisition of another portion of the Prologis balance sheet into the US logistics fund.鈥�
鈥淚n addition to more traditionally industrial uses, the ongoing growth of e-commerce and urbanisation continues driving fundamentals.
鈥淚ndustrial property returns have out-performed all the major asset classes for several years. Demand remains robust, strong rent is forecasted and new supply is constrained.鈥�
Most of the Prologis fund鈥檚 portfolio (85%) is located in the major markets of Southern California, Miami, New Jersey, Chicago and the San Francisco Bay Area.
As reported in June, the Texas Permanent School Fund is also investing in the enlarged fund.
NYSCRF has invested with Prologis since 1999 when they created a $163m joint venture to invest in Southern California industrial markets. A portion of this portfolio is still held by the pension fund.
