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Merimieselakekassa refraining from real estate investment in 2010

by Stuart Taylor

  • 14 Jan 2010
  • PE
  • RE

The EUR 708 million pension fund will not be making any investments in the real estate asset class this year. It is almost 11% above its target allocation to real estate and is looking to reduce its allocation to within its 22% target allocation. The 32.5% allocation consists mainly of direct property, which is the portion that it will be decreasing in order to rebalance its portfolio. It will keep its private real estate portfolio which includes private equity real estate and core funds and accounts for 27% of its property allocation but is considering selling its shares in two listed REITs. Merimieselakekassa is unsure as to when it will return to the real estate asset class and has not discussed whether it will make new fund commitments in 2011. Its return will depend on whether it can rebalance its portfolio to fall within its target.

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