Alaska Retirement considers ending three real estate separate accounts

Alaska Retirement Management Board (ARMB) is planning to end $833.5m (€758m) worth of real estate separate accounts with Sentinel Real Estate, UBS and LaSalle Investment Management by transfering assets or reinvesting capital in funds.

In a board meeting document, the $61.8bn pension fund said it will consider moving its $175m Sentinel separate account investment, which holds three properties, into the Sentinel Real Estate Fund (SREF) or a similar, apartments-focused fund, which it said would increase diversification without changing strategy.

It will also consider transferring or liquidating a $535m portfolio of 11 properties held through a UBS separate account to fund investments in open-ended core real estate funds.

ARMB did not disclose any plans for the LaSalle separate account, which holds two properties worth $123m.

The final decision could be made within the next six months.

The pension fund said it is also planning to discontinue its $134m non-core real estate portfolio and reinvest the capital in listed real estate.

It said the move could take a few years to implement due to the illiquid nature of the non-core investments.

ARMB has its own internationally managed portfolio of real estate investment trusts, currently valued at $295.7m.

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