NORTH AMERICA – The Los Angeles County Employees Retirement Association (LACERA) has approved as much as $500m (€375m) of capital to be allocated for real estate as part of its investment plan for 2013-14.
John McClelland, principal investment officer for real estate, stated in a board-meeting document that this capital would be allocated to three investment strategies.
The largest of these is $300m of capital allocated to risk sectors.
This capital will be available for a combination of core, value-added and high-return strategies.
The core component could include a build-to-core strategy, which starts out as development and ends up being a core asset on a long-term basis.
This capital will be available for four of LACERA's existing separate account managers: INVESCO Real Estate, TA Associates Realty, Deutsche Asset & Wealth Management and Capri Capital.
LACERA will be making a $100m additional allocation to Cornerstone Real Estate Advisers for a separate account debt strategy.
McClelland wrote that the new allocation was being given to allow the manager to take advantage of the "continued attractive lending opportunities" in the market.
LACERA is figuring on an additional $100m to be allocated for co-investment opportunities.
These would be to make direct investments in either separate account properties or in certain investments that commingled funds are completing.
The pension fund said it was likely to require some help sourcing and evaluating potential investments for this strategy.
