The New York State Teachers鈥� Retirement System has increased its allocation for real estate and backed Brookfield Asset Management with a $300m (鈧�270m) commitment.
The US pension fund increased its target allocation from 10% to 11% while awarding Brookfield Asset Management a further $300m for a real estate debt separate account.
The amount follows a $350m allocation in December last year.
The pension fund said Brookfield鈥檚 strategy was 鈥渨ell-positioned for current real estate market conditions鈥� and would add to the pension fund鈥檚 floating-rate short-duration debt product through a 鈥渞elatively conservative strategy鈥�.
All of the capital for the separate account will be invested in the US through first mortgage loans and subordinated debt.
The primary focus will be on a combination of office, industrial, apartments and retail assets.
It is unclear how much additional capital the pension fund will have to invest with the new allocation, due to the size of the pension fund鈥檚 equity real estate portfolio.
The portfolio totalled $11.7bn at the end of March, accounting for 11.1% of the pension fund鈥檚 total plan assets.
The investor is allowed to invest in equity real estate in the range of 6% to 16% of total plan assets.
NYSTRS has also put $50m into the Rockpoint Growth & Income Fund II as a follow-on commitment.
The pension fund made a $50m commitment to Rockpoint Growth and Income Fund I.
NYSTRS has also extended contracts with Capital Management and Prima Capital Advisors.
The former relationship invests in REITs and real estate operating companies, while Prima Capital Advisors invests in CMBS, investment-grade REIT bonds, first mortgage loans and mezzanine loans and/or B-Notes.
The current value of this portfolio is $536m, with the relationship first agreed in 2003.
