Alaska Permanent Fund Corporation (APFC) is planning to invest $650m (€599.6m) in real estate in the coming fiscal 2024 year.
The $77bn sovereign wealth fund revealed in a meeting document that the real estate pacing amount set for the fiscal year beginning in July could be adjusted up to an additional $130m depending on opportunities.
Last year, APFC set a $700m real estate pacing for fiscal 2023 to target multifamily, industrial and office properties. At the time, APFC said the amount could be increased by $500m depending on opportunities and market conditions during the period which ends in June.
As of the end of April this year, APFC had deployed $1.05bn into real estate.
In the new fiscal year beginning in July, the sovereign wealth fund is expected to target multi-family and industrial through joint venture developments and open-ended real estate funds.
Another part of fiscal 2024’s real estate investment strategy is to add capital to real estate investment trusts (REITs) and making some direct property purchases depending on opportunities.
APFC said its recently redeemed $225m from the AEW Domestic REITS account, a move it said would help the sovereign wealth fund become more in line with its targeted allocation.
As of the first quarter of the year, the net asset value of APFC’s real estate portfolio was at $7.9bn or 10.2% of its total plan assets compared with a real estate allocation target of 9%.
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