Alaska Permanent Fund Corporation is considering removing real estate investment trusts (REITs) from its real estate portfolio to help increase liquidity, reduce its overall real estate allocation and free up capital for other real estate investments.
The sovereign wealth fund disclosed in a meeting document that eliminating its $883m (€840.5m) REIT portfolio, combined with planned property sales, would reduce its real estate allocation from 11.3% to 9.9% in the current year.
Alaska Permanent Fund’s current targeted allocation for real estate is 11%. Removing REITs would create $951m of available deployment capital this year.
Alaska Permanent Fund plans to reinvest the capital through open-ended and closed-ended funds, co-investments and higher-risk strategies like value-add, opportunistic and international markets, to adjust sector exposures.
To read the latest IPE Real Assets magazine click here.
