Alaska Permanent Fund Corporation (APFC) is planning to sell eight assets comprising mainly retail assets situated across Europe and the US in a deal expected to generate approximately $500m (€439.6m) in sales proceeds.
The sovereign wealth fund (SWF) disclosed in a board meeting document that the planned disposals – expected to be completed during the coming fiscal year beginning 1 July – are driven in part by the negative returns experienced by its retail properties over the past five years.
Alaska Permanent has said it expects to put additional assets up for sale over the next 24 months once it completes various asset-specific initiatives and repositionings.
The $81bn SWF does not plan a real estate pacing plan for the upcoming fiscal 2026 year, as its current 11.5% allocation to real estate slightly surpasses its 11% target for the asset class.
As previously reported, Alaska Permanent is also considering divesting real estate investment trusts (REITs) from its real estate portfolio.
Allen Waldrop, deputy private markets CEO at Alaska Permanent Fund, said: “The market value of REITs within APFC’s real estate portfolio is approximately $850m, which is approximately $750m less than the 15% benchmark weighting.
“Removing REITs from the benchmark would create more flexibility for the investment team to decide whether that weighting should continue or could be better deployed in other areas within real estate.”
Proceeds from the REIT portfolio sale could be used to adjust real estate allocation to meet targets, pay down high-interest debt or be redeployed into higher-return opportunities.
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