University of California increases real estate allocation
Some investors are increasing their allocations to real estate. The Regents of the University of California have increased the target allocation to real estate for the university system’s $3.2 billion Retirement Plan and $516 million General Endowment Pool. The increase to 7 percent from 5 percent was voted on at a board meeting in May and means an additional $650 million can be directed to real estate.
The University of California Retirement Plan has 45 percent of its real estate portfolio invested in core assets, 37 percent in value-added assets and 18 percent in opportunistic assets. The University of California General Endowment Pool has 39 percent in core real estate, 38 percent in value-added real estate and 23 percent in opportunistic real estate. Both primarily invest in U.S.-focused funds.