Alaska Permanent Fund Corporation (APFC) is investing $900m (€821m) in US real estate as part of its plan to increase its real estate allocation over the next two years.
The sovereign wealth fund said in a meeting document that it intends to invest $700m in industrial and multifamily real estate investment trusts from the second half of the year, and has made a $200m commitment to the Kayne Anderson Real Estate Opportunity Debt, a fund which reportedly raised $1.3bn last month to mainly target apartment assets.
APFC is under-allocated to both industrial and multifamily, which according to NCREIF are the two best performing property types. As at the end of last year, the $66.56bn sovereign wealth fund had 9% or $327m invested in apartments and $408m or 11% placed in industrial assets within its $3.8bn total real estate portfolio.
IPE Real Assets reported in December last year that APFC was planning to deploy $700m into private real estate in the 2020 fiscal year beginning 1 July and $600m the year after.
In May last year, the sovereign wealth fund intends to raise its real estate target from 11% during the period to 12% in 2020 and 13% in 2021.
To read the digital edition of the latest IPE Real Assets magazine click here.