New Mexico SIC Invests $530M in Real Estate, Real Assets

The New Mexico State Investment Council (SIC) announced it has set aside approximately $530 million for its real estate, real assets, and commercial real estate debt programs. The moves come after an assessment of the pension fund’s $3.7 billion real estate portfolio, which returned -9.3% in 2023.

The initial commitment was a $217 million re-up to Ares European Property Enhancement Partners IV. New Mexico contributed to the second fund in the series and has exposure to Ares Real Estate via their European opportunistic fund series Ares European Real Estate IV, V, and VI.

The fund invests in industrial and residential properties in the U.K. and Western European cities.

EQT Infrastructure VI received a $120 million top-off commitment, with an additional $45 million going to a previously established co-investment vehicle. Last year, officials made their inaugural investments through the fund and co-investment vehicle.

The fund intends to invest in 15-20 companies spanning digital, energy, transportation and logistics, environmental, and social themes. EQT expects a net return in the 11%-15% area.

In commercial real estate debt, the $52 billion pension fund committed $150 million in Torchlight Debt Fund VIII. The fund will target public and private commercial real estate debt, including both performing and distressed properties.

Torchlight Investors also operates its own loan servicing business, which manages $6.4 billion in commercial real estate debt and $710 million in distressed loans.