By Muskan Arora
The
$6bn Employees'
Retirement
System of the City of Milwaukee has committed $50m to Harrison Street Core
Property Fund Data Center within its real estate portfolio.
Callan,
the system’s consultant, proposed adding exposure to data centers as an
“allowable investment,” at its recent meeting.
The
Harrison Street fund purchases completed powered shell data centers leased to
investment-grade companies.
This
strategy will focus on pre-leased single tenant assets with credit tenants and
10-15 years leases. The fund will also participate in de-risked, pre-leased
developments in alignment with Harrison Street’s strategy in medical offices.
“The
data center allocation is consistent with the themes and strategy of the Fund.
Investment in this sector and the approach will further diversify Harrison
Street’s ability to invest in long-term stable income-producing assets,” stated
Callan, as per the meeting materials.
The
Harrison Street Core Property Fund invests in life sciences, student housing,
self-storage, medical office, and senior housing.
The
system allocates 7.6% or $452m against the target of 9.7%, as of May 31.
City of Milwaukee returned 9.63%, 6.86% and 8.32% for its 1,3 and 5- year time period against a benchmark of 11.89%, 4.51% and 7.77%.
