Rhode Island Pension Allocates $45M to Two Real Estate Funds
The Rhode Island Employees’ Retirement System, which oversees $10 billion in funds, made two allocations to real estate in March to further diversify its overall investment portfolio.
The system’s overall investment return for the year through the end of March 2023 was -1.1%, as managers seek out niche sector specialist real estate strategies in life sciences and multi-family properties to boost returns.
Rhode Island allocated $25 million to the Ventas Life Science and Healthcare Real Estate Fund, with no more than 50% of total commitment to be called in one fiscal quarter. The life sciences fund is well-positioned for a rising interest rate environment since it had secured low fixed rate debt prior to the changes in capital market conditions, according to the fund meeting.
A $20 million allocation was made to Greystar Equity Partners XI, which targets multifamily real estate. Greystar’s focus remains on keeping rents at attainable levels and maintaining stable rent-to-income ratios for their tenants, which has led to stable occupancy with low tenant turnover after a property is acquired, executives said.