New Mexico SIC unveils new real estate pacing plan

The New Mexico State Investment Council (SIC) has revealed plans to expand its exposure to European real estate as part of its new investment plan for 2021.

The investment council’s real estate portfolio is diversified by property type, risk characteristics and geography, according to a recent board meeting document. New Mexico SIC said it will increase its exposure in Europe from the current level of 9 percent to a target range of 10 percent to 15 percent.

“While the near-term outlook is for weak economic growth in Europe, the existing building stock is very old, and there are good opportunities to upgrade existing buildings to modern standards,” noted New Mexico SIC. “Additionally, managers have identified opportunities in underserved specialty sectors such as student housing, storage and multifamily.”

The focus of new commitments in the near term will be toward noncore investments. As part of the pacing plan, New Mexico SIC will commit $300 million