San Jose pension funds increase their commitment to core real estate

Two San Jose, Calif., pension funds have invested in the Clarion Lion Industrial Trust, a core real estate fund managed by Clarion Partners.

The San Jose Federated City Employees’ Retirement System committed $11 million, and the San Jose Federated Retiree Health Care Trust Fund committed $2.8 million to the fund, Dhinesh Ganapathiappan, investment officer for the city of San Jose, confirmed in an email.

This is the first time the city of San Jose has invested in this fund. However, San Jose has an existing relationship with a different vehicle, the Clarion Lion Properties Fund, which began in 2019.

In July 2020, San Jose committed an $8 million follow-on investment to the fund. Of the $8 million, $3 million came from the Federated pension, $4 million came from the Police & Fire pension and $1 came from Police & Fire Health Care Trust.

As of Dec. 30, San Jose had committed $150 million to Clarion Lion Properties Fund across the four San Jose plan