New Jersey looks to shift real estate allocations

According to its fiscal year 2015 investment plan, the New Jersey Division of Investment is looking to raise its allocation to real estate equity and private real assets, and subsequently reduce its allocation to real estate debt.

NJDI’s new target for real estate is 4.25 percent of its $76.76 billion portfolio (its previous target was 3.50 percent). As of May 30, NJDI’s actual allocation to real estate was 3.61 percent, leaving room for approximately $491 million in further investment. According to documents from the Division of Investment, it “continues to see attractive opportunities in the private real asset space and within real estate, particularly in non-major markets and outside the United States.”

The NJDI also decided to split its real assets/commodities allocation into two separate buckets, citing differences in return objectives, liquidity, outloo