Alaska Permanent Fund Corporation (APFC) has moved closer with its plan to move a portfolio of publicly-traded real estate investment trusts (REITs) back into its real estate allocation, the sovereign wealth fund said as it disclosed plans to make $350m worth of private real estate investments in fiscal 2021.
As previously reported, APFC had proposed moving its $1.57bn portfolio of REITs back into its real estate allocation.
APFC runs two global REIT strategies – an active portfolio managed by AEW and a passive portfolio overseen by State Street – benchmarked against the S&P Global REIT Index.
APFC said in the meeting document that it hired AEW Capital Management, prior to the start of fiscal 2021 beginning 1 July, to manage a new $700m allocation to invest in public US REITs to replace the old relationship.
The sovereign wealth fund said the new REIT capital will be split with roughly 70% for multifamily and 30% for industrial to help it reach an overall future goal of being overweight to both asset classes in its real estate portfolio.
APFC said it is considering investing part of $350m being allocated for investment in fiscal 2021 into at least one open-ended apartments fund.
APFC, which seeks to increase its real estate allocation, also intends to put some money in its direct acquisition or build-to core strategies.
Prior to its 2020 fiscal year ending, APFC made a $100m commitment to an open-ended industrial/logistics fund managed by Realterm Logistics, sovereign wealth fund said.
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