Los Angeles City Employees’ Retirement System (LACERS) will need to invest up to $300m (€268m) over the next two years to maintain its 5% real estate allocation.
According to its real estate consultant, The Townsend Group, the $14bn pension fund is planning to invest $175m over the next 12 months.
Up to $100m will be allocated to core investments and to achieve this LACERS will make up to two fund commitments.
LACERS has existing holdings in a variety of core open-ended funds, including the Jamestown Premiere Property Fund and Principal US Property Account.
It has recently completed its exit from PRISA II, a core fund managed by PGIM Real Estate. The decision to redeem from its $46m interest in the fund was reported in IPE Real Estate in March.
Townsend said LACERS is evaluating a number of options for the remaining $75m – including emerging managers, sector-specific strategies and European opportunity funds – and could invest the capital in up to four funds.
Last week, IPE Real Estate reported that LACERS had backed the debut real estate fund of start-up firm Asana Partners.